Pre-Budget Submission to Finance Canada ahead of Budget 2025

Submitted by: Action Against Hunger Canada
Date: March 10, 2025

Recommendations

Recommendation 1 – That the Government of Canada establish an emergency fund to
ensure that critical aid projects, already supported by Canadian investments, can continue uninterrupted despite the 90% cuts to USAID humanitarian and development programs globally.

Recommendation 2 – That the Government of Canada reaffirm its leadership in global
humanitarian assistance, and work with like-minded nations to fill the emerging void in
international development left by the significant cuts made by the US Government.

Introduction

Action Against Hunger Canada is a leading humanitarian organization dedicated to
addressing the root causes and consequences of hunger and malnutrition. Through lifesaving nutrition, health, and food security programs, we support vulnerable communities worldwide, ensuring sustainable solutions to malnutrition and food insecurity.

The need is significant: 733 million people globally suffer from hunger. However, we have
proven, effective, and efficient interventions to address this need that can be easily scaled. The challenge is not a lack of solutions, but rather a matter of political will and financial support.

The global hunger and malnutrition problem will continue to grow as a result of President
Trump’s decision to cut USAID spending by 90%, as the US represents 42% of global aid.
This has created a global crisis that is threatening lives. Canadian investments have already been impacted by these US developments, as Canadian organizations are often partners with USAID in delivering critical on-the-ground support to populations in need. Without USAID involvement, many of these investments are in jeopardy, including those led by Canadian organizations with Federal Government funding.

Action Against Hunger Canada calls on the Government of Canada to take immediate and
strategic action to protect Canadian aid investments and reaffirm Canada’s leadership in
global humanitarian efforts.

By investing in long-term, sustainable development funding and forging new international
partnerships, Canada can:

● Prevent unnecessary suffering and loss of life by ensuring continued support for
vulnerable populations.
● Strengthen global stability and security, mitigating the risks of conflict, forced
migration, and disease outbreaks.
● Position itself as a leader in global humanitarian efforts, reinforcing Canada’s values
and international reputation.

Recommendations

1. Establish an Emergency Fund to Protect Canadian Aid Investments

Given the funding crisis created by the US Government aid cuts, we recommend the
Government of Canada establish an emergency fund to ensure that critical aid projects, already significantly supported by Canadian investments, can continue uninterrupted. This fund would:

● Prevent the collapse of vital programs currently delivering nutrition and healthcare
services to vulnerable populations – and saving lives.
● Provide immediate financial stability to organizations affected by international aid cuts,
preventing further loss of life and essential services.
● Allow Canadian humanitarian organizations time to adjust their funding models and
explore alternative partnerships.

To put the impact of the USAID cuts into perspective, detailed below are the current
consequences for Action Against Hunger Canada’s programming. These examples are multiplied across the entire humanitarian sector.

Increased Malnutrition and Preventable Child Deaths

5 million Children at Risk: Over 5 million children will no longer have access to nutrition services.
Up to 280,000 Preventable Child Deaths: 1.5 million children will no longer have access to treatment for severe malnutrition, resulting in 280,000 preventable deaths. We are already having to turn away mothers and their babies from stabilization centres –meaning that babies are malnourished and will die.
3,000 Local Health Workers Affected: Lack of training and resources are leaving entire
communities without adequate healthcare and nutrition support.

Disruption of Life-Saving Programs

Nutrition Detection & Prevention Work Paused: The rollout of the SMART+ nutrition
data platform, which tracks malnutrition trends and supports in identifying food
insecurity and famines, is halted, delaying real-time response efforts in crisis areas such
as Sudan, Yemen, and Syria.
Breakdown of Emergency Nutrition Support: A 60% shortfall in core staffing jeopardizes life-saving nutrition programs in Gaza, Chad, and the Democratic Republic of Congo (DRC), among others.

While the impact on Action Against Hunger Canada’s work is severe, the global fallout from the USAID cuts is even more so:

Funding Losses: Action Against Hunger globally faces up to $120M in lost funding,
impacting 50 programs across Haiti, Ethiopia, Afghanistan, and other vulnerable regions.
Humanitarian Coordination Weakened: Reduced international aid limits early warning
systems, emergency response mechanisms, and the ability to mitigate crises before they
escalate.
Global Hunger Crisis Worsens: With over 733 million people suffering from hunger,
declining funding further endangers efforts to prevent famine and malnutrition.

2. Reaffirm Canada’s Leadership in International Development

The USAID cuts are part of a larger trend of declining international development commitments. Alongside the US, the UK has cut £6 billion (40%) from its aid budget. Several European countries have also announced cuts, including €2.4 billion from the Netherlands, €2 billion from France, a 53% cut from Germany, and a 25% cut by Belgium.

In the long term, Canada must reaffirm its leadership in global humanitarian assistance and work with like-minded nations to fill the emerging void in international development. To achieve this, we propose:

● Strengthening Canada’s international development commitments and securing long-term, predictable funding for aid programs.
● Collaborating with other donor nations to establish alternative funding mechanisms to
replace lost USAID and other contributions.
● Expanding support for initiatives like the SMART+ nutrition data platform to enhance
real-time response efforts in crisis regions such as Sudan, Yemen, and Syria.

About Action Against Hunger

Action Against Hunger is a global humanitarian organization committed to ending hunger and malnutrition. With operations in over 50 countries, we provide lifesaving nutrition, water, sanitation, and emergency relief to the most vulnerable communities. In Canada, we work closely with government partners to implement innovative, evidence-based solutions that save lives and build sustainable futures.

 

For more information, please contact:
Onome Ako, Chief Executive Officer
Action Against Hunger Canada
oako@actionagainsthunger.ca