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4w ago

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.

FILE -Australia's Foreign Minister Penny Wong, left, waits to shake hands with Secretary of State Marco Rubio, at the State Department, Jan. 21, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)
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A man in military uniform inside an aircraft stand in front of palettes carrying items labelled 'Australian Aid'.
Australia will shift $119 million of its foreign aid budget to the Pacific and Southeast Asia to fill the gaps in critical programs left by US aid cuts.

Overview

  • 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.