The Government will not be able to provide funding to aid agencies to offset cuts being made by other countries, the Minister of State for International Development has said.
However, Neale Richmond said there would be no reduction in Ireland’s aid funding and the Government would continue to provide support to agencies “that is both predictable and flexible, thereby enabling partners to adapt as well as possible to rapidly changing contexts”.
Mr Richmond said it would not be viable for Ireland’s funding to substitute for future shortfalls in income from the US or other donors.
He said he told aid organisations when he visited Kenya and Tanzania as part of the Government’s St Patrick’s Day programme that Ireland would not be reducing its development aid funding or criticising how they do their work.
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Instead, he said he would be seeking to “champion” their efforts as it was in Ireland’s interest to provide assistance to those under threat from war, hunger and poverty.
If global instability increased, he said, it would lead to trade disruption, rising commodity prices and increased patterns of migration.
A number of Irish-based aid organisations are facing significant budgetary challenges on foot of funding cuts introduced by the giant US government agency, USAid and reductions planned by the UK.
Mr Richmond said Ireland was fully committed to its programmes with aid organisations and their local partners overseas.
Since 2023, Ireland’s civil society partnership funding scheme has provided €100 million annually to the main Irish development NGOs, he said.
“Now is a challenging time for development aid and also our system of multilateralism. Much reform and reflection will be necessary but it doesn’t take away from the fact that this work is vital,” Mr Richmond said.
“Not only is this work, quite simply, the right thing to do but it is in the material interest of Ireland and the Irish people to make the world a safer place, to reduce the amount of people having to flee their homes, to create livelihoods worth living in these areas, to ensure women are empowered and to grow future partners for trade.”
Last week the Trump administration said it was officially cancelling 83 per cent of programmes operated by USAid – some 5,200 contracts worth tens of billions of dollars.
USAid was the largest donor to Irish aid agency Goal in 2023, providing €103 million in funding.
The UK is to cut its aid budget from 0.5 per cent of gross national income to 0.3 per cent in 2027.
In 2023, Concern Worldwide received more than €9 million from UK government sources.
Accounts for Trócaire show it received more than €4.25 million from the UK Foreign Commonwealth and Development Office last year.
Irish aid organisations have largely remained silent on the impact of the cuts in donations from governments to their operations. It is understood some are nervous about speaking publicly when the situation around US payments for services provided as well as future funding remains fluid.
However, Concern Worldwide said nearly 400 staff had been made redundant and this figure could rise further.
Caoimhe de Barra, Trócaire chief executive, said USAid accounted for just 4 per cent of the agency’s funding.
However, she said this was not the case for grassroots organisations in many parts of the world who would be severely affected.
“Humanitarian programmes that are saving lives have been shut down. In Ukraine, Ethiopia, Gaza and Sudan, millions of people have already lost access to essential food, water, healthcare and shelter services.”
