WHO Issues New Guidance to Help Nations Manage Global Health Funding Crisis

According to WHO projections, external health aid is expected to decline by 30–40% in 2025 compared with 2023, threatening the continuity of essential healthcare in dozens of LMICs.

The World Health Organization (WHO) has released a new global framework to assist countries in managing the escalating crisis caused by sharp reductions in external health financing. The guidance, titled “Responding to the Health Financing Emergency: Immediate Measures and Longer-Term Shifts,” sets out comprehensive policy options to help low- and middle-income countries (LMICs) sustain essential health services, protect vulnerable populations, and transition toward greater financial self-reliance.

A Growing Global Health Financing Emergency

According to WHO projections, external health aid is expected to decline by 30–40% in 2025 compared with 2023, threatening the continuity of essential healthcare in dozens of LMICs. WHO survey data collected from 108 countries in March 2025 revealed that the funding downturn has already disrupted key services such as maternal and child health care, immunization, disease surveillance, and emergency response.

In some cases, countries have reported up to 70% reductions in critical health services, coupled with significant job losses among health and care workers. More than 50 nations noted disruptions in health worker training, leaving already fragile systems struggling to maintain essential care delivery.

Dr. Tedros Adhanom Ghebreyesus, WHO Director-General, warned that the cuts threaten to reverse years of progress in public health:

“Sudden and unplanned cuts to aid have hit many countries hard, costing lives and jeopardizing hard-won health gains. But in this crisis lies an opportunity to transition away from aid dependency toward sustainable self-reliance. WHO’s new guidance will help countries mobilize, allocate, and use funds efficiently to protect the most vulnerable.”

From Crisis to Opportunity: Building Self-Reliance

The WHO’s new guidance emphasizes swift, evidence-based responses to mitigate both immediate and long-term impacts of the funding shortfall. The organization urges governments to treat health not as an expense but as an investment in social stability, human capital, and economic resilience.

Key recommendations in the report include:

• Prioritizing services for the poorest and most vulnerable populations;

• Protecting national health budgets even amid fiscal pressures;

• Improving efficiency through better procurement systems and strategic purchasing;

• Integrating externally funded programmes—such as those for HIV, malaria, or immunization—into comprehensive primary health care (PHC) models;

• Using health technology assessments (HTAs) to identify cost-effective interventions with the highest health impact per dollar spent.

WHO’s approach also underscores the need for political commitment at the highest levels, urging finance ministries and parliaments to align fiscal policies with health and development priorities.

Global Examples of Leadership and Reform

Despite widespread fiscal constraints, several countries are taking decisive steps to secure health financing and reduce dependence on external aid.

• Nigeria increased its national health budget by US$ 200 million to cover shortfalls in donor funding, channeling additional resources into immunization drives and epidemic preparedness.

• Kenya and South Africa have tabled proposals to increase domestic health spending, reinforcing the role of public financing in universal health coverage (UHC).

• Ghana removed the cap on excise taxes earmarked for the National Health Insurance Authority, resulting in a 60% budget increase, and launched “The Accra Reset”—an initiative to redefine governance and financing partnerships in health and development.

• Uganda has announced an integrated health service delivery plan designed to improve efficiency and sustain essential services amid donor reductions.

These examples reflect growing national ownership of health financing, signaling a gradual shift toward sustainable domestic solutions.

WHO’s Long-Term Vision: Resilient Health Systems

The new guidance forms part of WHO’s broader agenda to strengthen global health systems based on the principle of universal health coverage (UHC). It builds upon key World Health Assembly resolutions on “Strengthening Health Financing Globally” and “Economics of Health for All”, transforming high-level commitments into practical policy actions for countries in crisis.

To support governments in implementing these reforms, WHO and its partners will provide technical assistance, data analytics, and peer-learning opportunities. These efforts will be channeled through the upcoming UHC Knowledge Hub, a collaborative platform developed with the Government of Japan and the World Bank, scheduled for launch in December 2025.

The Hub will serve as a global resource center for sharing evidence-based strategies, financing innovations, and tools to help countries build resilience against future financial shocks.

Ensuring Health for All in an Era of Fiscal Uncertainty

WHO’s new guidance arrives at a pivotal moment, as many developing countries grapple with rising debt, inflation, and declining donor commitments. The organization is calling for renewed global solidarity, urging donors, international financial institutions, and private sector partners to work together in mitigating the health financing crisis.

By investing in efficient, equitable, and self-sustaining systems, WHO believes countries can transform this financial challenge into an opportunity for long-term health security and sustainable development.

As Dr. Tedros concluded,

“Every country has the potential to build a resilient health system. The key is political will, fiscal innovation, and the commitment to protect every person’s right to health—even in times of uncertainty.”