The United Nations and its affiliated agencies are facing a severe financial crisis following a funding freeze by the United States, leading to mass layoffs and the suspension of critical humanitarian programs worldwide. The freeze, announced by US President Donald Trump’s administration, has significantly impacted relief operations in countries such as Afghanistan, Sudan, and Ukraine, affecting millions in need.
Humanitarian Programs at Risk
UN Secretary-General António Guterres warned that the funding halt has already disrupted essential services, including healthcare, refugee support, and emergency aid. He revealed that:
- Over nine million people in Afghanistan will lose access to health and protection services.
- Cash assistance for one million Ukrainians has been suspended.
- Funding for Sudanese refugees has run out, leaving thousands in limbo.
As a result, UN agencies are scrambling to revise their operations, make strategic budget cuts, and seek alternative funding sources to continue their work. Some organizations are also hoping that legal challenges to the funding freeze will restore at least part of US foreign aid commitments.
Impact on Refugees and Migrants
The United Nations High Commissioner for Refugees (UNHCR), which received more than 40% of its nearly $5 billion budget from the US last year, is among the worst affected agencies. It has already cut $300 million in planned activities, causing disruptions in multiple countries:
- Nearly 1.8 lakh forcibly displaced women and girls in the Central African Republic, Uganda, and South Sudan have lost access to critical services.
- In Ethiopia, 2 lakh displaced women and girls will also be affected.
“If new funding is not forthcoming soon, more cuts in direct life-saving assistance will be inevitable,” UNHCR spokesperson Matthew Saltmarsh warned.
Similarly, the International Organization for Migration (IOM), which received over 40% of its $3.4 billion budget from the US in 2023, has been forced to take drastic steps. The agency has sent dismissal notices to around 3,000 employees working on US-funded resettlement programs.
Health Programs Under Threat
The freeze has also jeopardized global health initiatives supported by the US. Among the most critical programs affected:
- The World Health Organization’s (WHO) global measles and rubella lab network, which relies entirely on an $8 million annual US contribution, is “at risk of collapse.”
- The global response to tuberculosis (TB), which previously received $200-$250 million per year from the US, is now facing severe funding shortfalls.
- WHO has had to use its emergency reserves to maintain Ebola response efforts in Uganda and to continue its mpox outbreak response.
- HIV/AIDS programs run by the UN have been forced to shut down many service centers. About 750,000 Haitians will be affected, with 70% of 181 US-funded sites already closed.
At a UN briefing, spokesperson Stéphane Dujarric highlighted the impact on Afghanistan, where more than 200 health facilities have shut down, depriving 1.8 million people of essential medical services.
UN Using Emergency Reserves
In an effort to mitigate the crisis, the UN Office for the Coordination of Humanitarian Affairs (OCHA) has allocated $110 million from its emergency response fund to support underfunded operations across Africa, Asia, and Latin America. However, officials acknowledge that this is only a temporary solution.
UN humanitarian chief Tom Fletcher emphasized the urgency of the situation, stating, “It is, of course, for individual countries to decide how to spend their money. But it is the pace at which so much vital work has been shut down that adds to the perfect storm that we face.”
Sources By Agencies
