WHO Faces $2.5B Shortfall Despite Budget Cuts Amid Looming US Exit

The World Health Organization (WHO) is bracing for a major financial crisis, with a $2.5 billion funding gap forecasted through 2027, even after slashing its upcoming budget.

According to Health Policy Watch, the WHO has cut its proposed 2026–2027 budget from $5.3 billion to $4.2 billion, but still faces a $1.9 billion shortfall. This adds to the $600 million deficit the agency already expects this year.

The funding blow comes as the United States, historically WHO’s largest donor, moves forward with a complete withdrawal by January 2026 under President Donald Trump’s directive. Washington also froze nearly all foreign aid, including crucial health project support.

For the 2022–2023 cycle, the US contributed $1.3 billion—mostly earmarked for specific programs. However, it failed to pay its 2024 dues and is unlikely to meet 2025 obligations, leaving WHO with an unpaid $260 million in membership fees.

To help mitigate the crisis, outgoing German Health Minister Karl Lauterbach pledged an additional €2 million, raising Germany’s total contribution to over $317 million.

WHO Director-General Tedros Adhanom Ghebreyesus has warned of staff and program cuts, starting with senior leadership at headquarters. He also cautioned that global health efforts—especially for HIV programs—are at risk, potentially leading to millions of additional infections and deaths if funding dries up.

Tedros urged the US to reconsider, calling WHO “indispensable” to global health cooperation.