How USAID Budget Cuts Threaten Global Health System

The United States Agency for International Development (USAID) has been a cornerstone of global health development for decades. Established in 1961, USAID's mission has been to advance international development and humanitarian assistance, with health systems being a core area of focus. Through its funding and programmatic efforts, USAID has played a pivotal role in combating infectious diseases, improving maternal and child health, and strengthening health systems in low- and middle-income countries (LMICs) (USAID, 2021). However, recent decisions to reduce USAID funding raise critical concerns about the future of global health, jeopardizing progress made toward Sustainable Development Goals (SDGs) and other global health targets. The Trump administration's funding policies toward USAID have brought additional scrutiny. Notably, the administration implemented significant budget cuts that disrupted numerous international development projects. For instance, in February 2025, a funding freeze halted humanitarian aid globally, leading to legal challenges and a temporary lift ordered by a federal judge (AP News, 2025). Additionally, critical Australian-funded projects addressing climate, health, and education in the Indo-Pacific region were jeopardized due to these cuts (The Guardian, 2025). Women’s development programs also faced severe setbacks; threatening millions of dollars earmarked for gender equality efforts (CBS News, 2025). Contractors working with USAID filed lawsuits as funding halts disrupted operations worth hundreds of millions of dollars (Reuters, 2025). These incidents underscore the tangible challenges created by policy changes and funding reductions.