Election 2026: National coming for Ministry of Foreign Affairs and Trade, foreign aid to pay for health policies
New Zealand's National party has proposed cutting foreign aid by 10% to fund a $600 million increase in the national medicines budget. The move has been criticized by Foreign Affairs Minister Winston Peters as dangerous to international relations.
Why it matters
The proposal highlights a domestic political debate over balancing healthcare spending with international diplomatic and aid commitments.
National will inject an extra $600 million into New Zealand’s medicines budget, partly paid for by a sizeable cut to foreign aid.
It will also force the Ministry of Foreign Affairs and Trade (MFAT) to make savings like other agencies in the public service.
The proposal to cut foreign aid has been labelled “desperate and dangerous” by New Zealand First leader Winston Peters, the current Foreign Affairs Minister who protected his ministry this term from cuts other agencies faced.
“We need to double the size of the economy and we cannot do that if we neglect the very markets we need to be in,” Peters said in a social media post after National’s announcement.
“The old parties have never understood New Zealand has to work for its money. The idea to cut foreign aid during one of the most uncertain global times in history is both desperate and dangerous.
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