Global aid cuts are rippling through the Indo-Pacific — hitting health, education, climate resilience, gender equality and economic development. Strained systems are being pushed further, and governments are being asked to do more with less.
The stakes are high. Reports point to rising health risks and potential loss of life linked to the pullback of global aid. In response, Australia has begun to re-prioritise health in its development program although the funding allocation remains below pre-COVID levels.
So the question is if this is enough. With finite resources and growing needs, where — and how —Australia should step up is a gnarly issue.
We asked three experts: Are health outcomes the most critical gap Australia should fill, and how should we do it?
Health is the most critical gap Australia must fill because no development ambition can stand where health systems are under threat. Health is not just a sector—it’s a prerequisite for development. It shapes how people are born, grow, live, work, age, and participate in society. When health systems falter, education outcomes decline, gender equity stalls, workforce participation shrinks, and institutional trust erodes.In the Indo-Pacific aid cuts are not just affecting budgets— they could fray the very systems that hold nations together.
Southeast Asian experts surveyed in the Lab’s Pulse Check x Southeast Asia couldn’t be clearer: investing in human capital— health and education—is the single most impactful lever for national progress and enhancing social and economic development. It’s where Australia’s efforts matter most and where Australia's national interests are best served, as affirmed by the Pulse Check x Australia’s Agenda experts.
Australia redirecting $119 million to Indo-Pacific health and climate resilience is a good start, however it cannot match the scale of the U.S. assistance that has been lost. Australia can do something more powerful: it can lead in shifting how aid supports sustainable health outcomes.
This means addressing the root causes of poor health—the social determinants of health —not just the medical conditions they shape. Such an approach places equal importance on removing structural inequities in health, where factors like education and socio-economic status affect health outcomes. With the current pressures on health systems in the region, Australia should lead in embedding health goals across broader development interventions, centring health equity, backing local leadership, and investing in the systems that make all other progress possible.
Laetitia is a Project Assistant at Development Intelligence Lab. She has previously worked at Interplast, a not-for-profit providing plastic and reconstructive surgical care in the Indo-Pacific. Laetitia is a recent graduate of a Bachelors of Global Studies and a Bachelors of Applied Public Health from the Australian Catholic University. Laetitia is particularly interested in the intersections of health, development and policy. At the Lab, we love Laetitia’s ability to jump into any project with curiosity, flexibility and sharp analytical thinking.
The direct impact of aid cuts across the Indo-Pacific has been smaller in scale than in regions like Africa, but significant consequences have still been felt. A World Health Organization (WHO) report highlighted disruptions to humanitarian aid, emergency response, surveillance, and service delivery (e.g., immunisation), due to aid cuts and the U.S. withdrawal from WHO, among other setbacks.
One such critical impact has been on the global measles and rubella network—comprising 700+ labs and funded by the U.S. Centre for Disease Control to the tune of USD 8 million annually—which is essential for countries in our region. Potential cuts to Gavi, the Vaccine Alliance, also pose major risks. Similar concerns extend to HIV, tuberculosis, maternal and child health programs, and influenza surveillance programmes. Since January 2025, over 500,000 jobs have reportedly been lost in the health and care sectors, mostly in low- and middle-income countries – which causes ripple effects beyond health care.
In contrast to development specialists, the reliance on US funding in health may have come as a surprise to many health professionals. The current funding gap is too large for any single donor to fill, but targeted contributions can help. Supporting measles-rubella testing through WHO networks, strengthening regional capacity, and fostering new partnerships are crucial steps. In addition to ODA-contributions, Australia should expand investments through mechanisms like the National Health and Medical Research Council and the Medical Research Future Fund – which not only benefit global health but also strengthen Australia’s leadership in research and innovation.
The effects of the U.S. cuts have prompted renewed reflection on the models and sustainability of global health funding. While aid and development in the health sector remain critical—especially in resource-constrained settings—they need to be geared towards countries ultimately maintaining their own strong, resilient health systems.
Meru is an applied epidemiologist, vaccinologist and global health researcher with expertise in infectious diseases, vaccinology and emergency responses/ outbreaks. Growing up in India, she saw infectious diseases make people very sick and became a ‘disease detective’. She was recognised as the Science and Medicine winner for 40 Under 40 Most Influential Asian-Australians in 2019. At the Lab, we love Meru’s passion for highlighting and addressing the inequities in global health systems.
Yes, global aid cuts are putting lives at risk—and in Papua New Guinea (PNG), they threaten the health and rights of those already left behind. But they also highlight the most critical gap Australia can help fill: sustained investment in community-led responses.
The Key Population Advocacy Consortium (KPAC) PNG, founded in 2018, is an illustrative example of such responses. Our health system is complex and often struggles to reach the most marginalised. Where it falls short, KPAC steps in—working alongside health services to ensure no one is left behind.
Through community-based HIV screening, PrEP promotion, STI awareness, condom distributions and safe spaces like “Haus Dua,” we bring essential services directly to those hidden populations. We put our communities—those most affected by HIV—at the centre of the response.
Our six member networks are more than advocates; they are leaders, carers, and lifelines.
We are proud of our community-led monitoring work—using forums, exit interviews, and mystery clients to amplify community voices and demand better health services.
Australia’s support has already been vital. Funding provided through the Australian Government, via Health Equity Matters and UNAIDS, is helping to strengthen community-led organisations like ours—but this must go further. Now is the time to deepen that commitment by investing in local solutions, led by the communities most affected. The greatest gap is not just in funding, but in elevating the voices of those closest to the health response in communities.
Lesley is the Executive Director of Key Population Advocacy Consortium (KPAC) in Papua New Guinea. KPAC is a coalition of organisations that advocate for the rights and health needs of key populations, including sex workers, men who have sex with men, transgender individuals and people who inject drugs. At the Lab, we love how Lesley combines his work on the ground with sharing his insights regionally and globally.
