WHO Faces 20% Budget Cut Following U.S. Withdrawal Announcement

The World Health Organization is reducing its budget by 20% following the U.S. withdrawal as its largest donor, creating a $600 million deficit for 2025. Director-General Tedros Adhanom Ghebreyesus highlights severe cuts to missions and staff, threatening global health responses amidst deepening financing challenges caused by geopolitical shifts.

WHO Faces 20% Budget Cut Following U.S. Withdrawal Announcement
Headquarters of the World Health Organization in Geneva.

Geneva, March 29, 2025 – The World Health Organization (WHO) is set to slash its budget by 20% after the United States, its largest donor, confirmed its withdrawal from the agency, forcing significant reductions in missions and staff. WHO Director-General Tedros Adhanom Ghebreyesus outlined the dire financial outlook in an internal email to staff, accessed by AFP on Saturday.

The U.S. decision, enacted by President Donald Trump upon his January inauguration, includes a near-total freeze on foreign aid, severely impacting global health programs. This move leaves the WHO with a projected $600 million shortfall for 2025, compelling immediate cost-cutting measures. “We have no other choice but to start making reductions,” Tedros wrote in the Friday email.

Trump, who first initiated the U.S. exit from WHO during his 2020 term, justified the latest withdrawal by citing a disparity between American and Chinese contributions, accusing the agency of “ripping off” the U.S. Historically, the United States contributed 16.3% of WHO’s $7.89 billion budget for 2022-23, dwarfing other donors.

Tedros had warned of impending austerity measures in late January, but the situation has since worsened. “Drastic cuts in U.S. development aid, alongside reductions from other nations redirecting funds to defense, have made our position far more critical,” he explained. Despite prior efficiency efforts launched over nine months ago, the agency now faces unprecedented resource mobilization challenges amid geopolitical and economic turbulence.

A Shrinking Budget

In February, WHO’s executive board trimmed its proposed 2026-2027 budget from $5.3 billion to $4.9 billion. However, with donor prospects dimming further, Tedros has now pitched an even leaner $4.2 billion budget to member states—a 21% reduction from the original plan. The bulk of U.S. funding, primarily voluntary contributions for specific projects, will vanish, exacerbating the shortfall.

“Despite significant cost savings, we’ve reached a point where we must scale back our work and workforce,” Tedros concluded. The cuts will begin at headquarters, starting with senior leadership, before rippling across all levels and regions. This restructuring threatens WHO’s ability to tackle global health crises, from pandemics to malnutrition.

The WHO’s financial woes predate the U.S. exit, but Trump’s policy has pushed the agency to a breaking point. As the world’s leading health authority braces for a leaner future, experts warn of ripple effects on vulnerable populations and international health security.