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Severe Global Health Financing Cuts


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The World Health Organization (WHO) has recently disseminated new information on how to combat the long-term and immediate consequences of drastic and sudden cuts to external funding, which have been interrupting the delivery of necessary health services in many countries. This new guidance information, titled “Reporting to the health financing emergency: immediate measures and longer term shifts," suggests a variety of policy options for countries to address the severe financing shocks and enhance the mobilization of financing for national health systems. 


With external aid projected to drop from 30% to 40% in 2025, compared to 2023, there have been adverse effects on the health services of low- and middle-income countries (LMICs). According to the World Health Organization’s survey data collected in March 2025, funding cuts have led to reductions in critical services, including maternal care, vaccination, health emergency response and preparedness, and disease surveillance, by up to 70%. Additionally, more than 50 countries have shown several job losses among health and care workers, along with major disruptions to the training programs of healthcare workers. Funding cuts in 2025 have exacerbated years of health financing challenges, including increasing debt burdens, inflation, economic uncertainty, extreme out-of-pocket spending, systemic budget underfunding, and dependence on external aid. 


Further supporting the data mentioned above, Dr. Tedros Adhanom Ghebreyesus, the WHO Director-General, also states that this crisis presents an opportunity for LMICs, in particular, to move away from relying on aid for healthcare services and instead become self-sufficient. He mentions that the WHO’s guidance information will support this effort to better mobilize, prioritize, and utilize funds to support health service deliveries to those most vulnerable. 


WHO’s new guidance for policies touches on prioritizing health services that the most vulnerable use, protecting the health budget and critical services, utilizing health technology assessments for services and products that have the most significant health impact per dollar spent, improving efficiency through precise purchasing, and combining externally funded services into comprehensive primary health care delivery. Countries such as Kenya and South Africa have been following these new policy suggestions, allocating additional funds to health or awaiting parliamentary approval for the increase. Nigeria has also increased its health budget by 200 million to make up for less aid, focusing on immunization, epidemic response, and priority programs. Furthermore, Uganda has developed a policy agenda for integrating health services and programs. 


With these new policy suggestions already being implemented in several countries, the WHO plans to continue supporting countries in becoming independent and efficient in their healthcare systems, serving those who need essential care. 


Thank you for reading, 

Siri Nikku 


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