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OMB Withheld $1.35 Billion in Global Health Funding

The federal government has blocked billions intended for international health programs before the fiscal year ends.

Updated on Sept. 28, 2026 in COVID-19

Isometric editorial illustration of a heavy brass medical scale base on a smooth marble floor, symbolizing withheld healthcare resources.
The Office of Management and Budget has withheld $1.35 billion in bilateral global health funding with the federal fiscal year nearing its end. AI Illustration. Upload story photo >

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Should the federal government maintain existing funding levels for international infectious disease programs?

The Office of Management and Budget is withholding $1.35 billion in approved bilateral global health funding designated for tuberculosis, HIV, and malaria programs. With the federal fiscal year set to expire on September 30, lawmakers have raised alarms regarding the potential impact on international health initiatives.

Why it matters

The administration aims to reduce dependence on foreign assistance and has diverted funds to cover the costs of dismantling the US Agency for International Development. Projections suggest that the withheld funding could lead to tens of thousands of preventable deaths worldwide.

An analysis of 18 memorandums of understanding shows U.S. funding reductions ranging from 43% to 97% compared to 2024 levels. Additionally, $650 million was diverted for Ebola response in the Democratic Republic of Congo.

The players

Office of Management and Budget

This federal agency oversees the implementation of the president's policy and budgetary goals.

US Agency for International Development

This agency previously managed the majority of non-military U.S. foreign assistance programs before being dismantled in 2025.

Gavi, the Vaccine Alliance

This public-private global health partnership works to increase access to immunization in poor countries.

The details

The administration is currently negotiating new memorandums of understanding with recipient nations as part of the America First Global Health Strategy. Funds were also utilized to cover office lease terminations and severance pay for former USAID employees following the agency's 2025 dismantlement.

Timeline

  1. PEPFAR was established by the Bush administration in 2003.

  2. April 2026: OMB informed Congress of plans to use the health funds.

  3. July 2026: The State Department disbursed $600 million to Gavi.

  4. September 30, 2026: The federal fiscal year ends and the funding expires.

Health Landscape

This funding shift represents a major departure from the long-term support model established by the Presidential Emergency Plan for AIDS Relief. Since 2003, that program has been credited with saving 26 million lives, a legacy now challenged by current austerity measures.

The reduction in global health spending may limit access to essential treatments for tuberculosis and HIV in recipient nations. Patients in those regions could face immediate disruptions in care due to the drastic funding cuts outlined in recent government memorandums.

The takeaway

The reallocation of long-term health budget authority underscores a shift in how federal agencies prioritize administrative closure costs over ongoing global medical programs. This move highlights the precarious nature of international aid that relies on annual discretionary funding cycles.

Further reading

For more on the current state of federal health initiatives, visit the COVID-19 section.

Source note: This article includes information reported by Progressive-charlestown.

Live Poll

Should the federal government maintain existing funding levels for international infectious disease programs?