WHO Faces Financial Crisis as U.S. Withdrawal Leads to Significant Funding Gap
At the World Health Assembly on May 19, 2025, World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus announced that at least 70 countries are experiencing significant disruptions in medical care due to substantial funding cuts. These reductions have led to the closure of health facilities, job losses among health workers, and increased out-of-pocket expenses for patients.
The WHO is confronting a $600 million budget shortfall and anticipates a 21% funding reduction over the next two years, which will lower its biennial budget to $4.2 billion. This financial strain is largely attributed to the United States' decision to withdraw from the organization. In January 2025, President Donald Trump signed an executive order initiating the U.S. withdrawal from the WHO, citing dissatisfaction with the organization's handling of the COVID-19 pandemic and other health crises. The withdrawal process is set to be finalized in January 2026.
Historically, the United States has been the WHO's largest financial contributor, providing approximately 18% of its budget. The impending withdrawal has created a significant funding gap, prompting the WHO to implement cost-cutting measures, including reducing its workforce and leadership team. The organization has already halved its senior leadership team in response to the financial crisis.
The funding cuts have had a profound impact on global health services. More than 2,600 health facilities in 12 humanitarian crises have either suspended services or are on the verge of doing so. This disruption affects essential health services, including immunization programs and disease surveillance, heightening the risk of disease outbreaks and public health emergencies.
In response to the U.S. withdrawal, China is expected to become the largest contributor of state fees to the WHO. This shift in financial support may influence the organization's policies and priorities. Additionally, the WHO is engaging in emergency discussions with international donors and diplomats in Geneva to address ongoing crises, including outbreaks of mpox and cholera, without reliable funding from the U.S.
The U.S. withdrawal has also raised concerns about the future of global health initiatives. The WHO's budget for 2024–2025 stands at $6.8 billion, with the U.S. contributing a significant portion. The cessation of U.S. funding threatens programs addressing tuberculosis, HIV/AIDS, and other pressing health challenges. Experts warn that this funding gap could have severe consequences for low- and middle-income countries relying on WHO initiatives for health infrastructure and emergency response capabilities.
The international community faces critical decisions about the future of global health collaboration and funding. The WHO's financial crisis underscores the importance of sustained international support to maintain essential health services and respond effectively to global health emergencies.
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Sources
- People in 70 countries are missing out on medical care amid funding cuts, says WHO
- Trump's withdrawal of U.S. from WHO to impact global health
- WHO launches US$ 1.5 billion Health Emergency Appeal to tackle unprecedented global health crises
- WHO Director-General's opening remarks at the media briefing – 10 April 2025
- Executive Order 14155
- WHO Director-General's opening remarks at the media briefing – 17 March 2025
- World Health Organization looks ahead to life without the US