UN Faces Massive Aid Cuts, Job Losses Amid Major US Funding Reductions

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UN Faces Massive Aid Cuts, Job Losses Amid Major US Funding Reductions

New York: The World Food Programme (WFP) and several other United Nations agencies are bracing for sweeping job cuts and downsized operations due to significant funding shortfalls, largely attributed to reduced contributions from the United States.

According to internal documents obtained by the Associated Press and confirmed by UN officials, these financial constraints will severely hamper global humanitarian efforts.

Agencies such as UNICEF, the UN Office for the Coordination of Humanitarian Affairs (OCHA), and the UN refugee agency (UNHCR) are among those affected. Across the board, budget reductions are projected to impact around 20% of staff and cut into crucial services. These developments reflect the broader consequences of policy shifts under President Donald Trump, who significantly scaled back US foreign aid and empowered a new federal body, the Department of Government Efficiency (DOGE), to reduce government spending—especially in international assistance.

Even before this policy shift, UN agencies were already grappling with diminished donor support. The United States accounted for nearly half (46%) of WFP’s funding in 2024. Now, the agency expects to lose up to 30% of its staff, marking the most substantial reduction in 25 years. A WFP spokesperson warned that these cuts will lead to the closure or downsizing of numerous aid programs worldwide.

UN Secretary-General Antonio Guterres is reportedly alarmed by the funding crisis. In a statement, WFP acknowledged the gravity of the situation, noting that it will focus its limited resources on life-saving operations targeting the 343 million people facing hunger or famine.

The internal memo outlines that job losses will affect all levels and regions, and hints at further cuts depending on future reviews of program priorities.

UNHCR, which assists tens of millions of displaced people, plans to cut costs by reducing its headquarters and regional operations by 30%, slashing senior leadership positions by half, and closing several country offices. Officials warn that these changes will drastically disrupt critical services such as food, clean water, healthcare, and shelter. In Sudan, for example, at least 500,000 displaced people are expected to lose access to clean water, raising the threat of disease outbreaks.

In Lebanon, where approximately one million Syrian refugees reside, funding shortfalls have forced the suspension of cash aid for 347,000 people and could soon affect the remaining 200,000. Primary health services for 40,000 refugees have already been cut.

UNICEF also anticipates a 20% decline in funding for 2025. The agency says it has already introduced cost-saving measures but will need to make further reductions. It has ended programs affecting 6,000 personnel and is cutting headquarters staff by 20%.

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