The World Health Organization concluded its annual assembly on Tuesday with a significantly reduced budget but still faces a $1.7 billion funding shortfall after losing its largest donor, the United States.
Budget Cuts and Financial Struggles
The WHO slashed its 2026-2027 budget from $5.3 billion to $4.2 billion, far below its $6.8 billion 2024-2025 budget. While member states approved the leaner budget, the agency remains under severe financial strain.
Shift in Funding Structure
Historically, the WHO relied on “assessed contributions”—mandatory fees from member states—but voluntary donations now dominate, making funding unpredictable. By 2020-2021, mandatory payments covered just 16% of the budget.
To stabilize finances, countries agreed to increase assessed contributions to 50% of core funding by 2030-2031. A 20% fee hike for 2024-2025 was followed by another 20% rise this year, adding $90 million annually.
Pledges Fall Short
Despite securing 60% of its 2026-2027 base budget, the WHO still needs $1.7 billion. A recent pledging event raised just $210 million, including:
$80 million from Switzerland
$57 million from Novo Nordisk Foundation
$13.5 million from Sweden
$6 million from Qatar
US Exit Deepens Crisis
The Trump administration’s 2020 WHO withdrawal and frozen payments left a major financial hole. The U.S., once the top donor, skipped this year’s assembly.
In a video message, U.S. Health Secretary Robert F. Kennedy Jr. criticized the WHO as “bloated and moribund,” accusing it of being influenced by China, pharmaceutical interests, and “gender ideology.” He urged nations to consider alternative institutions.
WHO Downsizing
The budget crunch has forced restructuring:
Executive team cut from 14 to 7
Departments reduced from 76 to 34
No mass layoffs have been announced yet, unlike other UN agencies.
Outlook
WHO Director-General Tedros Adhanom Ghebreyesus called the fee hikes a “vote of confidence,” but the agency’s ability to meet global health demands remains in question amid dwindling funds and geopolitical tensions.
