Macro Aftermath Archived

Global aid cuts impact development progress

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AI Overview

What happened: In 2025, 113 developing countries spent more on foreign debt servicing than on education, with global aid to education predicted to decline by up to 30%. The U.S. House passed a farm bill that cuts $187 billion from SNAP, the largest reduction in federal food assistance ever. Cuts to overseas aid by the U.S. and the U.K. risk global economic instability, with the U.K.'s reductions up to 90% in bilateral support to some African countries.

Market impact: These cuts impact development progress, affecting education and food security in developing countries. Companies and sectors involved in international development, education, and agriculture may face reduced demand and revenue. Valuations of companies focused on these sectors could reprice lower.

What to watch next: The U.S. midterm elections in November may influence further aid cuts. The U.K.'s new prime minister's response to the Foreign, Commonwealth and Development Office's annual report, released in September, will determine the future of U.K. aid commitments.
AI Overview as of Jul 23, 2026

Timeline

First SeenMar 22, 2026
Last UpdatedMar 22, 2026