Under the Trump administration, the U.S. government passed a 90-day freeze on foreign aid in January 2025—citing mismanagement and a reassessment of spending priorities. The effect was immediate and global.
Many countries rely on U.S. assistance, including Uganda, which has depended on it for healthcare, military aid, economic assistance and development programs since the 1960s. Many of these initiatives are often run by NGOs funded by the United States Agency for International Development (USAID), and now, they are hanging by a thread.
Why the U.S. Aid Freeze Happened
The decision came from the Trump administration under the need to review all foreign aid expenditures, following the “America First” policy whose goal is to ensure that U.S. taxpayer’s money is used per national interests. UN aid agencies cut back operations after Trump’s 90-day funding suspension – The Guardian.
Uganda’s Reliance on USAID
Uganda is one of the largest beneficiaries of US aid in East Africa, receiving funding for health programs, economic development education and humanitarian relief. Organizations supporting everything from HIV/AIDS treatment to refugee assistance are largely dependent on USAID support, thus, with the funding temporarily halted, the country bears the weight of keeping these programs running.
One of the biggest concerns lies with the health sector where the U.S. government President’s Plan for AIDS Relief (PEPFAR) provides antiretroviral therapy to over a million Ugandans living with HIV. Without steady funding, treatment disruptions could lead to an increased mortality rate.
Many health officials, some of whom are on the verge of unemployment, are already warning of potential drug shortages, especially in rural areas where USAID-backed programs have been the sole providers of free medicine the Ministry of Health has called for an emergency meeting to evaluate alternative solutions, but with limited resources, there’s only much they can do. Charities reeling from USAID freeze warn of “life or death” effects
Beyond healthcare, Uganda’s education system also receives support from US organizations, especially in underserved regions where USAID grants fund the infrastructure, teacher training and facilitation plus scholarships for students. With the freeze, many will find their learning opportunities disappearing overnight.
Similarly, economic and agricultural development programs established to uplift local communities are now facing setbacks since the U.S. initiatives which provide job training, small business funding and farming resources are now put on hold. USAID Funding Freeze Puts Uganda’s Development Progress at Risk – NilePost
The government has remained measured in its response, emphasizing that while foreign aid is valuable, the country must find ways to sustain its own development. Parliament recently amended the Anti-Money Laundering Act, removing NGOs from stringent financial regulations that previously limited their ability to attract alternative funding.
In the short term, the government is looking to bridge the gap by reallocating resources, but this will only provide partial relief. The long-term solution may lie in diversifying funding sources, increasing domestic revenue collection, and fostering stronger regional partnerships.
For now, if the U.S. administration lifts the freeze after its 90-day review, funding may resume with some conditions. However, if cuts are implemented, Uganda—and many other developing nations—will need to find creative ways to fill the gap.
