ACT proposes $1.1 billion cut to overseas aid while shielding Pacific and Ukraine funding

ACT has unveiled a fiscal plan to trim foreign aid spending by over $1.1 billion across a four-year span beginning in 2028, targeting a return to 2017 funding levels and saving about $283 million annually. This would cut roughly 28 percent of the $3.06 billion budget allocated for overseas assistance from 2024/25 to 2026/27. The party insists that aid to Pacific nations and Ukraine will be exempt, arguing these regions are critical to New Zealand’s interests.

Leader David Seymour condemned other budget line items as wasteful, referencing a $15 million allocation for a fruit project. Aid specialist Terence Wood cautioned that such rapid reductions would disrupt New Zealand’s aid operations and could force widespread cuts beyond the Pacific. The proposal follows a National Party pledge to reduce aid by $431 million to fund domestic health initiatives.