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Government Scrambles to Fill Shs480 Billion HIV/AIDS Funding Gap After U.S Aid Freeze

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Summary:

  • Uganda spends UGX 1.928 trillion annually on HIV services, with 60% (UGX 1 trillion) allocated to treatment and laboratory monitoring.

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KAMPALA: Prime Minister Robinah Nabbanja has announced that Cabinet will deliberate on measures to address Uganda’s Shs480 billion funding gap in HIV/AIDS treatment and prevention programs following the suspension of U.S. aid.

“The suspension of USAID funding, effective January 20, 2025, has severely impacted Uganda’s HIV/AIDS programs. To sustain essential services, an additional UGX 480 billion is required. The Ministry of Health is preparing a Cabinet Memorandum to brief Cabinet on the crisis and seek Executive guidance on resource mobilization,” Nabbanja stated.

She made these remarks during the March 6, 2025, plenary sitting in response to Workers MP Abdul Byakatonda, who sought clarity on the government’s plan to mitigate the funding freeze’s effects.

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Byakatonda pressed the government on its immediate response to ensure uninterrupted HIV treatment for 1.4 million Ugandans and prevent job losses among 12,551 Community Health Workers affected by the funding cut.

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“What urgent measures is the government implementing to mitigate the U.S. funding freeze? How will it safeguard jobs and high-level skills among Community Health Workers?” he asked.

He also challenged the government on its commitment to health financing, urging adherence to the Abuja Declaration, which recommends allocating at least 15% of the national budget to health. Uganda currently allocates just 6.5%.

“Will the government establish an Emergency HIV Response Task Force, similar to the COVID-19 model, to mobilize alternative funding? What strategies exist to locally manufacture essential HIV/AIDS supplies?” he added.

The funding crisis stems from a 90-day freeze on U.S. aid, part of 26 Executive Orders issued by President Donald Trump on January 24, 2025. This suspension halted grants and agreements with Uganda’s implementing partners.

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According to December 2023 data from the Uganda AIDS Commission, 1.49 million Ugandans live with HIV—910,000 women, 520,000 men, and 72,000 children. In 2023 alone, Uganda recorded 38,000 new infections and 20,000 AIDS-related deaths.

Appearing before Parliament’s Health Committee in February 2025, Dr. Vincent Bagambe, Director of Planning and Strategic Information at the Uganda AIDS Commission, emphasized the crisis, highlighting Uganda’s heavy reliance on donor funding.

Uganda spends UGX 1.928 trillion annually on HIV services, with 60% (UGX 1 trillion) allocated to treatment and laboratory monitoring. However, Uganda contributes only UGX 230 billion, while the rest comes from donors, primarily the U.S. government and the Global Fund.

PEPFAR alone provides UGX 340 billion for health system strengthening, covering salaries for 4,333 clinical workers across 2,000 health facilities and 26,690 community health workers who link patients to care.

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Dr. Bagambe warned that Uganda remains disproportionately affected by HIV/AIDS.

“For every 100 people living with HIV globally, four are Ugandans. Despite having a population of 46 million, Uganda bears 3.8% of the global HIV burden,” he noted.

With the U.S. aid freeze disrupting critical funding, the government faces mounting pressure to find sustainable alternatives to maintain HIV/AIDS services and protect those affected by the crisis.

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