Prime Minister Robinah Nabbanja has announced that the Ministry of Health is drafting a Cabinet memorandum to seek executive guidance on securing funds to address the shortfall caused by the United States Agency for International Development (USAID) funding withdrawal. During the Prime Minister’s Time in the House on Thursday, 06 March 2025, Nabbanja stated that the government is engaging both international and local stakeholders to mobilize resources and ensure the continuity of HIV/AIDS programs. She highlighted that an additional Shs480 billion is needed to fill the funding gap and maintain essential services.
This response came after Hon. Abdulhu Byakatonda (Indep., Workers Representative) raised concerns about the government’s plans to mitigate the impact of the US funding freeze and ensure uninterrupted HIV treatment. Byakatonda noted that the aid freeze jeopardizes the jobs of 12,551 community health workers in Uganda and questioned when the government would fulfill its Abuja Declaration commitment to increase health funding to 15 percent, given that Uganda currently allocates only 6.5 percent of the national budget to health.
On 20 January 2025, the US issued a memorandum pausing potentially trillions of dollars in federal aid previously offered by USAID.
In another development, the Prime Minister disclosed that over Shs163 billion has been released to cover capitation grants for government grant-aided schools for the first term of the 2025 calendar year. This announcement followed concerns raised by Kalungu West MP, Hon. Joseph Ssewungu, regarding delays by the Ministry of Finance, Planning, and Economic Development in releasing funds needed to procure instructional materials.
The Prime Minister clarified that funds are typically released during the first, third, and fourth quarters of each financial year. She stated, “The total approved budget for capitation grants for the financial year 2024/2025 is Shs490.2 billion. During the first quarter, the Ministry of Finance released Shs163.4 billion to local governments to cover the third term of 2024.” Nabbanja noted that the Ministry of Education and Sports had initially requested local governments to halt the transfer of funds to institutions until enrollments were validated, a process that has since been completed, allowing for the transfer of funds to schools.
