KAMPALA, Uganda — The United States Agency for International Development (USAID) has terminated its direct government-to-government funding for a project aimed at strengthening Uganda’s Regional Referral Hospitals (RRHs), citing a shift in U.S. government priorities under President Donald Trump’s administration.
In a letter dated April 28, 2025, and addressed to Uganda’s Minister of Finance, Planning & Economic Development, Matia Kasaija, and Minister of Health, Jane Ruth Aceng, USAID/Uganda Mission Director Daniele Nyirandutiye announced the termination of the award, effective May 28, 2025.
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The termination follows President Trump’s January 20, 2025, Executive Order directing a review and realignment of all U.S. foreign assistance. Subsequent guidance from the U.S. Secretary of State led to the decision to end the funding for the convenience of the U.S. government and in alignment with its agency priorities and national interest, according to the letter.
The terminated award pertains to a Consolidated Implementation Letter (G2G-IL 30) dated August 30, 2022, which was part of a broader Development Objective Agreement (DOAG) signed in 2018. USAID emphasized that the termination only applies to the G2G-IL 30 and not the overarching DOAG.
USAID has instructed the Ugandan government counterparts and the seven participating RRHs – located in Mbarara, Jinja, Moroto, Mbale, Gulu, Lira, and Kabale – to cease incurring any costs beyond those necessary for the award’s termination and administrative closeout. The hospitals are required to submit a close-out plan and budget to USAID/Uganda by May 5, 2025, for approval.
Furthermore, each RRH must submit an expenditure report by June 15, 2025, detailing the status of funds. The Ugandan government is obligated to repay USAID any unutilized funds not allocated for pending liabilities. However, if USAID funds disbursed prior to the termination notice are insufficient to cover legally binding obligations, the hospitals may submit a written claim for the outstanding amount. USAID/Uganda will work with hospital staff to reconcile funding until the closeout process is complete.
Regarding property purchased under the agreement, USAID stated that ownership of all assets, equipment, and supplies, with the exception of excess property, will vest in the Grantee, which is the Government of Uganda. Therefore, USAID will not require a separate disposition plan for these assets.
The letter also reminded the RRHs of their post-closeout responsibilities, including the retention of records related to the agreement for a period of three years after the termination date.
USAID/Uganda reserved its rights regarding intellectual property developed using funds from the agreement. The U.S. government may also designate a Termination Agreement Officer (TAO) to oversee the termination and closeout process.
In the letter, USAID/Uganda expressed appreciation for its partnership with the Ugandan ministries and expressed hope that their collaborative efforts have contributed to building a strong and resilient health system.
The Ugandan government was requested to confirm receipt and agreement with the termination notice by the close of business on May 2, 2025. Inquiries regarding the termination should be directed to a designated USAID email address.
The letter was copied to several high-ranking Ugandan government officials, including permanent secretaries of the finance and health ministries, the accountant general, and hospital directors of the affected regional referral hospitals. Attachments to the letter included excerpts of the termination and suspension clauses from the DOAG and the Consolidated Implementation Letter.
