[EXCLUSIVE] WHO Member States Clash Over Proposals to Slash Budget in Light of Financing Crunch

Newsletter Edition #250 [The Files In-Depth]

Hi,

The World Health Organization is at the cusp of a pivotal moment. Could the current financing crunch irrevocably alter its mandate? Is it just about the numbers? As always, there is politics and opportunism in every crisis that unfolds.

That is the story in today’s edition, as we examine the closed door discussions on financing matters that unfolded in Geneva last week.

Today as countries gather for WHO’s Executive Board meeting, the financing question will be front and centre at this meeting.

As always, we make every effort to bring our readers exclusive analyses in the midst of the turmoil that has gripped global health set off by the Trump administration’s decision on not only withdrawing the U.S. from WHO, but also setting in motion a funding freeze affecting implementing organizations globally, and potentially costing lives.

We are watching how stakeholders will shape the ongoing, somewhat forced transition at WHO.

Watch out for our updates from WHO’s EB this week.

Thank you for reading.

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Best,

Priti

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Illustration Credit: Amy Clarke, Chembe Collaborative

I. EXCLUSIVE: EB156-PBAC41

WHO Member States Clash Over Proposals to Slash Budget in Light of Financing Crunch

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Countries are sharply divided over a proposed plan to slash the budget of the World Health Organization in light of the financing crisis sparked off President Donald Trump’s decision to withdraw the U.S. from the organization. Though the U.S. is the largest funder of WHO in the current biennium period, not all WHO member states see the situation as dire.

At the deliberations that unfolded this past week during the meeting of the Programme Budget and Administration Committee of the WHO Executive Board (PBAC) [January 29-January 31], diplomatic sources spoke about difficult and intense discussions on financing.

We reported last week that WHO has worked on a budgetary proposal for the next biennium of 2026-2027 pegged at US$ 7.4 billion, an increase of 9% over the previous period.

That proposed budget is now being hotly debated with mostly donor countries suggesting a lower budget to factor in the loss in funding from the U.S. On the other hand, many developing countries appear to be of the view that any shortfall from the funding on account of the Trump Executive Order, can be met by other funding sources. To be sure, at this point there is no clarity yet on how the hole in the budget can be filled.

While there is an overall acknowledgement by many countries both developed and developing ones, that WHO can be more efficient with its resources, there are also concerns on the implications of a shrinking budget on the mandate of the organization.

Some believe that the financing question masks an emerging power struggle among member states at WHO that could eventually have an impact on the future direction of the organization.

In a report to the Executive Board released just a few hours ago, the PBAC recommends a proposal for a reduced base budget for WHO’s operational activities to US$4.9 billion from US$ 5.3 billion. (See more below.)

The budgeting matters will be taken up at the WHO Executive Board meeting beginning today. WHO has time until April-May to raise additional funds, and to get countries to adopt the new budget for the next biennium at the World Health Assembly.

For this story, we spoke with several diplomats on site at the sidelines of the PBAC meeting this past week.

Image Credit: Photo by Karen Laårk Boshoff, Pexels