US aid freeze affects P15B worth of DOH, DepEd projects
Health Secretary Teodoro Herbosa says the Philippines should not solely rely on international donors as the government scrambles to look for alternative sources to fund crucial programs worth $262 million (about P15 billion) following US President Donald Trump’s order to halt tens of billions of dollars in overseas aid.
The freeze order will affect the Department of Health’s (DOH) human immunodeficiency virus and acquired immunodeficiency syndrome (HIV/AIDS), malaria and tuberculosis (TB) programs amounting to $168 million (P9.77 billion), and the Department of Education’s (DepEd) 5-Point Reform Agenda worth $94 million (P5.5 billion). These are all supported by the US Agency for International Development (USAID).
“With growing nationalistic and individualistic idealism spreading across countries, the responsibility to fund health initiatives cannot fall solely on international donors. International financing, though crucial, cannot be relied upon indefinitely. Sole reliance on external aid is not a sustainable financing model,” Herbosa said at Wednesday’s first meeting of the Philippine Country Coordinating Mechanism for the Global Fund.
“Now, it is clear that governments, including ours, must recognize our own priorities and take more responsibility for financing these priorities in our national health budgets—lessening our dependence on international funding cycles and external decisions and protocols,” he added.
Largest donor
It was reported during the meeting that the decline in foreign fund allocations may pose significant challenges as the government uses the support of the Global Fund to Fight AIDS, Tuberculosis and Malaria (GF) for essential commodities, such as second-line drugs, antiretroviral therapy and human resources for health.
The United States, through USAID, is the largest donor to the GF and has contributed $26.31 billion since 2002. Washington committed up to $6 billion for the GF seventh replenishment covering 2023 to 2025.
This current cycle, the DOH is set to receive—and stand to lose, most if not all—assistance from the GF: $25 million for HIV/AIDS, $136 million for TB and $7 million for malaria.
The DOH assured it was now working to identify various sources of domestic funding through a Transition and Public Financial Management (PFM) Plan. PFM aims to increase domestic health financing by mobilizing reimbursements from the Philippine Health Insurance Corp., optimizing the utilization of the DOH budget, and securing alternative funding sources, such as grants, loans and investments from local government units and the private sector.
Saving DepEd programs
The DepEd, meanwhile, will try to salvage programs supported by USAID, Education Secretary Sonny Angara said on Thursday.
In a letter to US Ambassador to the Philippines MaryKay Carlson, Angara thanked Washington, especially USAID, for its “long-standing support in improving basic education in the Philippines.” He also informed Carlson about the impact of Trump’s freeze order.
The Philippines has five education programs funded and supported by USAID.
These are the Advancing Basic Education in the Philippines (ABC+) aimed at enhancing literacy, numeracy and socio-emotional learning; Improving Learning Outcomes for the Philippines (ILO-PH) strengthening the comprehensive assessment framework and policies to enhance educational standards; and Strengthening Inclusive Education for Blind/Deaf Children (Gabay), which supports learners with special needs.
Also affected are the Nationwide Tracer Study of DepEd Alternative Learning System for 2022-2023, an ALS Tracer Study that is set for completion this month, tracking the progress and outcomes of students who completed or took part in the ALS program; and the Second-Chance Opportunities for Out-of-School Youth (Opportunity 2.0) program aimed at providing alternative learning systems and upskilling opportunities for out-of-school youth.
