KAMPALA, Uganda (BG) – Uganda’s government is working to secure alternative funding after the United States Agency for International Development (USAID) halted aid, Prime Minister Robinah Nabbanja told Parliament on Thursday.

She said the Ministry of Health is preparing a Cabinet memorandum to seek guidance on closing the funding gap.

The government is also engaging international and local stakeholders to ensure continued HIV/AIDS interventions.

The US issued a memo on January 20 pausing potentially trillions of dollars in federal aid previously provided through USAID.

“To address this crisis, an additional Shs480 billion ($130 million) is required to sustain essential services,” Nabbanja said.

She was responding to Hon. Abdulhu Byakatonda (Indep., Workers Representative), who raised concerns about the aid freeze, which threatens 12,551 community health worker jobs.

He also urged the government to fulfill its Abuja Declaration commitment to increase health funding to 15% of the national budget.

In another development, Nabbanja revealed that over Shs163 billion ($44.29 million) has been released for capitation grants to government grant-aided schools for the first term of 2025.

This followed concerns from Kalungu West MP Hon. Joseph Ssewungu about delays in funding for instructional materials.

Nabbanja clarified that funds are disbursed in the first, third, and fourth quarters of each financial year.

She added that the Ministry of Education initially delayed fund transfers to verify school enrollments, but approvals have now been granted.