WHO Slashes Budget Amid US Withdrawal, Incurs $1.7bn Deficit

The World Health Organization (WHO) has reduced its 2026–2027 budget to $4.2 billion as it struggles to stabilise its finances following the withdrawal of the United States, its largest donor. 

This revised figure, down from the initially proposed $5.3 billion, still leaves the organisation facing a significant funding gap of $1.7 billion. 

The decision to cut the budget was finalised during the recently concluded World Health Assembly, which also approved the new budget plan. 

For context, the WHO’s programme budget for 2024–2025 was $6.8 billion, underscoring the financial strain the agency is under.

Historically, the WHO received its funding mainly through “assessed contributions” based on member countries’ wealth and population. 

Over the years, however, it has become increasingly dependent on “voluntary contributions” from donors, which are often earmarked for specific projects. 

By the 2020–2021 cycle, assessed contributions accounted for only 16 percent of the approved budget, highlighting the growing imbalance. 

In an effort to restore financial stability, member states agreed in 2022 to gradually increase assessed contributions so they make up half of the organisation’s core budget by 2030–2031. 

As part of this commitment, countries approved a 20 percent increase in membership fees in the 2024–2025 budget, and at this year’s assembly, another 20 percent hike was endorsed. 

This move is expected to generate an additional $90 million annually.

WHO Director-General Tedros Adhanom Ghebreyesus praised the decision as a significant show of support during a critical period. 

Hanan Balkhy, the WHO’s Eastern Mediterranean regional director, confirmed that 60 percent of the core 2026–2027 budget is already secured, calling it a remarkable achievement given the current financial challenges. 

Nonetheless, the organisation still falls short by $1.7 billion, despite the budget being trimmed.

To address the shortfall, a pledging event held last week raised an extra $210 million toward the WHO’s 2025–2028 investment round. 

Major contributors included Switzerland with $80 million, the Novo Nordisk Foundation with $57 million, Sweden with $13.5 million, and Qatar with $6 million. 

Tedros acknowledged the donations, stressing that the funds will support the continuation and expansion of life-saving initiatives in a challenging global health environment.

The absence of the United States from the assembly was deeply felt. 

Since returning to office in January, US President Donald Trump initiated the country’s formal withdrawal from the WHO and halted most foreign aid, leaving the agency financially vulnerable. 

The United States had been the WHO’s largest contributor, but its decision not to pay membership dues for 2024 and 2025 has dealt a major blow. 

Although Washington did not participate in the assembly, US Health Secretary Robert F. Kennedy Jr. addressed the gathering through a video message. 

In it, he criticised the organisation as inefficient and overly influenced by China, gender ideology, and the pharmaceutical industry. 

He encouraged other nations to consider forming alternative institutions.

In response to the financial crisis, the WHO has begun restructuring. 

The size of its executive management team is being halved from 14 to seven, and the number of departments will be cut from 76 to 34. 

Despite these significant changes, the organisation has so far avoided the mass layoffs seen in other United Nations agencies.