The global health body now faces a $2.5 billion budget deficit, including a $1.9 billion gap in its planned $4.2 billion budget for 2026-27 and an additional $600 million deficit through the end of 2025, according to senior WHO officials who spoke at a recent global staff ’Town Hall’ meeting.

Health Policy Watch, a nonprofit global health news outlet, reports that the U.S.—historically the WHO’s largest donor—has yet to pay its 2024 dues of $130 million, further deepening the organization’s financial crisis.

In total, the country owes WHO $260 million for the 2024-25 period, funds that are unlikely to be paid following newly elected President Donald Trump’s decision to withdraw from the organization.

While the U.S. withdrawal will only take effect in January 2026 due to a required one-year notice period, the financial repercussions are already being felt.

Raul Thomas, WHO’s Assistant Director General of Business Operations, highlighted that the withdrawal of U.S. funding has played a key role in the crisis. The country contributed nearly $1 billion in both fixed and voluntary payments in 2022-23. The loss of these funds means WHO must now make significant budgetary adjustments to continue its core operations.

In response, WHO Director General Dr. Tedros Adhanom Ghebreyesus has announced strategic reductions across all levels of the organization, beginning with senior leadership.

Speaking to WHO staff via Zoom, he emphasized that the organization will undergo a prioritization exercise to focus on its core functions and maximize its impact despite reduced resources.

“Everything is on the table, including merging divisions, departments, and units, and relocating functions,” Tedros stated, adding that the prioritization process will be completed by the second half of the month.

He assured that the cuts will be guided by strategic need rather than contract type or grade level.

A newly formed “prioritization working group” led by Deputy Director General Dr. Mike Ryan, alongside Regional Directors Hans Kluge (Europe) and Hanan Balkhy (Eastern Mediterranean), will oversee the restructuring efforts. Thomas and WHO Chief Scientist Jeremy Farrar are also part of this team.

President Trump’s decision to pull the U.S. from WHO marks the second time he has pursued such action. During his first term, he initiated the withdrawal in response to what he claimed was WHO’s mismanagement of the COVID-19 pandemic. His successor, President Joe Biden, reversed that decision upon taking office. However, upon his return to the White House in January 2025, Trump swiftly signed an executive order to withdraw again.

While the full impact of the U.S. withdrawal will only take shape in 2026, WHO officials are already bracing for the financial and operational consequences of losing its largest donor. The organization now faces tough choices to ensure that it continues its global health initiatives with significantly reduced funding.

WHO Director General Dr Tedros Adhanom Ghebreyesus at the February Executive Board meeting, which cut the global healthy agency’s 2026-27 budget to $4.2 billion – but funds still fall dramatically short.