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Monday, Jan 27, 2025

WHO to Reduce Expenditures and Focus on Health Initiatives Following U.S. Withdrawal Announcement

WHO to Reduce Expenditures and Focus on Health Initiatives Following U.S. Withdrawal Announcement

Following the U.S. announcement of its planned exit in 2026, the World Health Organization is organizing cost-saving actions and prioritizing its programs.
The World Health Organization (WHO) plans to implement cost-cutting measures and reevaluate its priorities following the United States' decision to withdraw from the organization.

This move comes after U.S. President Donald Trump announced on January 23, 2023, that the WHO mishandled the COVID-19 pandemic and other global health crises.

WHO Director-General Tedros Adhanom Ghebreyesus notified staff of this development in an internal memo, emphasizing the financial ramifications of the U.S. departure from the agency.

The U.S. currently provides about 18% of the WHO's funding, making it the agency's largest financial contributor. The withdrawal is set to take effect in January 2026, after a one-year notice period as mandated by a 1948 U.S. congressional resolution.

The U.S. owes about $130 million in membership fees that were due in January 2024. Additionally, the 2025 assessment remains unpaid, and there are worries that voluntary contributions for certain programs may cease. To alleviate financial pressures, the WHO is planning to cut travel costs, suspend non-essential hiring, and adopt other cost-saving strategies, such as defaulting to virtual meetings, limiting IT equipment replacements, and halting office renovations unless they address safety concerns or have been pre-approved. Despite these financial hurdles, the WHO has been working on reforming its funding model, with member states increasing their contributions and engaging in an investment round initiated in 2023. However, the organization recognizes that more funding is needed, and further cost-cutting measures might be necessary.

The WHO is dedicated to supporting its staff during this time of financial transition.
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