The World Health Organization (WHO) concluded its annual assembly on Tuesday facing a deepening financial crisis, following the withdrawal of the United States—its largest donor.
Despite approving a reduced budget for the 2026–2027 period, the agency remains $1.7 billion short of its target.
In response to the U.S. exit, the WHO scaled back its planned budget from $5.3 billion to $4.2 billion. This is a significant reduction compared to its $6.8 billion budget for the 2024–2025 period.
The approved plan reflects the agency’s attempt to stabilize its finances and chart a course through growing uncertainty.
WHO funding operates on a two-year cycle, and for much of its history, the organization depended on assessed contributions—membership fees calculated based on a country’s economic standing and population.
However, in recent decades, it has grown increasingly dependent on voluntary contributions from a limited pool of donors, which are earmarked for specific programs and offer less financial flexibility. By 2020–2021, these membership fees accounted for just 16 percent of the WHO’s overall budget.
In an effort to restore some financial stability, member states had previously agreed to gradually increase assessed contributions to cover half of the agency’s core budget by 2030–2031.
They began this process by raising fees by 20 percent for 2024–2025 and, during this year’s assembly, approved another 20 percent hike, expected to generate an additional $90 million per year.
WHO Director-General Tedros Adhanom Ghebreyesus described this move as a crucial endorsement at a critical time.
So far, WHO has secured around 60 percent of its 2026–2027 core budget, according to Hanan Balkhy, the organization’s regional director for the Eastern Mediterranean.
Despite that progress, a considerable shortfall remains, underscoring the challenges ahead.
Efforts to close the gap include a pledging event held last week, which raised $210 million in additional funds for the 2025–2028 investment round. Among the contributions were $80 million from Switzerland, $57 million from the Novo Nordisk Foundation, $13.5 million from Sweden, and $6 million from Qatar.
Tedros welcomed the support, saying it would help sustain WHO’s critical life-saving work during a period of global health uncertainty.
The United States’ departure has dealt a particularly heavy blow. Since returning to office in January, President Donald Trump has frozen most U.S. foreign aid and initiated the formal process of leaving the WHO.
Washington, which traditionally provided the largest share of WHO funding, has declined to pay its membership dues for 2024 and 2025 and was notably absent from this year’s assembly.
U.S. Health Secretary Robert F. Kennedy Jr. addressed the meeting via video, criticizing the organization as bloated and outdated, and calling on other countries to consider establishing alternative institutions.
He accused the WHO of being overly influenced by China, pharmaceutical companies, and what he described as “gender ideology.”
Faced with mounting financial pressure, the WHO is undergoing internal restructuring. The size of its executive management team will be halved from 14 to seven, and the number of departments will be cut from 76 to 34.
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While other UN agencies have resorted to major layoffs, the WHO has so far avoided announcing large-scale job cuts.
As the agency navigates a new era without its largest financial backer, its leadership hopes that increased commitments from other member states will allow it to continue its global public health mission without compromising its independence or reach.
