The World Health Organization (WHO) sought to stabilize its finances at its annual assembly, which concluded Tuesday, but still faces a significant funding gap. The agency reduced its 2026-2027 budget from $5.3 billion to $4.2 billion after the United States, its largest donor, withdrew support.
The WHO’s 2024-2025 program budget stood at $6.8 billion. The new, slimmer budget was approved during the World Health Assembly, WHO’s decision-making body, yet a $1.7 billion shortfall remains.
How WHO Funding Works
WHO operates on two-year budget cycles. Established in 1948, it initially funded operations through “assessed contributions” — membership fees calculated by wealth and population. Over time, voluntary contributions, earmarked by donors for specific projects, have become the primary source, accounting for 84% of the 2020-2021 budget.
To improve financial stability, member states agreed in 2022 to raise assessed contributions to 50% of the core budget by 2030-2031. Membership fees were increased by 20% for the 2024-2025 cycle, and another 20% rise was approved this year, expected to add $90 million annually.
The 2026-2027 Budget
The $4.2 billion budget for 2026-2027 received approval, with WHO Director-General Tedros Adhanom Ghebreyesus calling the vote “a strong vote of confidence.”
WHO has secured about 60% of this budget so far, according to Hanan Balkhy, Eastern Mediterranean regional director, but still faces a $1.7 billion funding gap.
Donor Pledges
At a recent pledging event, donors contributed $210 million toward the 2025-2028 investment round supporting the base budget. Key contributions included $80 million from Switzerland, $57 million from the Novo Nordisk Foundation, $13.5 million from Sweden, and $6 million from Qatar.
Tedros emphasized the importance of these funds in sustaining life-saving work amid financial challenges.
Impact of US Withdrawal
Following his return to office, US President Donald Trump initiated a one-year withdrawal from the WHO and froze most US foreign aid. Traditionally the largest donor, the US’s departure and unpaid 2024-2025 fees have left WHO struggling financially.
The US did not attend the World Health Assembly. However, Health Secretary Robert F. Kennedy Jr. criticized WHO as inefficient and influenced by China, gender ideology, and the pharmaceutical industry, calling for new global health institutions.
WHO Reorganization
In response to funding cuts, WHO is restructuring—halving its executive management team from 14 to seven and reducing departments from 76 to 34. Unlike other UN agencies, it has yet to announce large-scale layoffs.
