UN Funding Crisis
United Nations News reported on 19 May that the UN is facing a worsening cash crisis that threatens its ability to carry out vital work. Because of member states’ current underpayments of contributions – $2.4 billion in unpaid regular budget dues and $2.7 billion in peacekeeping – the UN has been forced to cut spending, freeze hiring, and scale back some services.
For example Associated Press (AP) reported in April that the Office for the Coordination of Humanitarian Affairs (OCHA) is cutting its 2,600 staff who operate in more than 60 countries by 20% because of “brutal cuts” in funding that have left it with a nearly $60 million shortfall.
Devex reported in April that World Food Programme (WFP) plans to cut up to 30% of its global workforce by 2026 as donor funding drops sharply and hunger crises around the world deepen, potentially impacting up to 6,000 positions.
Trade unions are deeply concern about these cuts and the ongoing reform of the United Nations system which UN Secretary-General António Guterres has developed called UN80 to cope with future underpayments. For example, at a meeting in Geneva on 20 May, reported (in French) by the Tribune de Geneve, union leaders expressed their deep concern about UN80. One of the most criticized measures is the 20% budget cut.
For the unions, this arbitrary cut solves nothing. Ian Richards, President of UN Office in Geneva Staff Union and Vice-President of Coordinating Committee for International Staff Unions and Associations (CCISUA), said: “Global crises call for strengthened multilateral cooperation, yet we are witnessing the systematic weakening of the UN. We already have a budget that’s only 78% funded; cutting further won’t close the gap. On the contrary, it further weakens our ability to act.”
Nathalie Meynet, Chair of the UNHCR Staff Council and President of the CCISUA, points out that the sharp drop in the United States’ contribution has led to the elimination of thousands of positions: “We have lost 40% of our budget. It’s not just our jobs that are disappearing, but also our ability to help refugees.” She deplored the lack of consultation in discussions surrounding agency mergers, which, she said, risks diluting protection mandates.
The United States (US) is the biggest contributor to OCHA’s extra-budgetary resources, paying about 20% which amounts to $63 million for 2025. In April, AP asked the US the State Department to clarify the status of the $63 million. The response was that funding for OCHA, along with other international organizations, remains under review. The White House did not respond.
President Donald Trump has dismantled the US Agency for International Development, which was responsible for humanitarian aid, and has drastically curtailed funding that has kept millions of people alive around the world. Devex reported on 19 May that 10,000-plus former USAID staff members are competing for just 300 new roles at the US State Department.