Australia Boosts Foreign Aid to Pacific and Southeast Asia After US Cuts

The 2025-26 budget redirects $119 million to health, climate, and humanitarian programs, but aid as a share of national income remains at a historic low.

• Australia's foreign aid budget for 2025-26 increases to $5.1 billion, with $119 million redirected to address gaps left by US aid cuts.
• Three-quarters of Australia's aid budget, the highest proportion in 40 years, is now focused on the Indo-Pacific to ensure regional stability and security.
• Key allocations include $370 million for the Myanmar crisis, $355 million for climate initiatives, and $5 million to sustain HIV programs in impacted countries.
• Funding reductions to multilateral institutions, such as the Global Fund and UN Development Program, have been made to prioritize regional programs.
• Advocacy groups welcome the regional focus but urge Australia to increase aid to 1% of federal spending, as aid remains just 0.18% of gross national income.

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