The World Health Organization (WHO) is confronting a financial crisis with a salary gap exceeding $500 million for the 2026–2027 biennium, as revealed by Director-General Dr. Tedros Ghebreyesus during the high-level welcome session of the 78th World Health Assembly in Geneva, Switzerland, themed “One World for Health.”
The announcement which was made on May 19, 2025, follows the United States’ withdrawal from WHO, a significant blow to the organization’s funding.
Financial Strain and Workforce Reductions
Dr. Tedros outlined the severe financial challenges facing WHO, worsened by the loss of U.S. contributions, which totaled $1.284 billion in the 2022–2023 biennium.
He stated that “We are facing a salary gap for the next biennium of more than $500 million,” noting that cost-cutting measures, including reductions in travel, procurement, recruitment, and early retirement programs, have been implemented to narrow the deficit.
Despite these efforts, WHO will reduce its workforce to manage the shortfall.
Tedros stated further, “Let’s be clear: a reduced workforce means a reduced scope of work,” Tedros emphasized. “The Organization simply cannot do everything Member States have asked it to do with the resources available.”
The workforce reduction will be carried out strategically to preserve the quality of WHO’s work and position the organization to emerge stronger.
Proposed Budget and Structural Realignment
The 78th World Health Assembly, convened in Geneva, is set to review a reduced programme budget of $4.2 billion for 2026–2027, a 21% cut from the initially proposed $5.3 billion.
Tedros highlighted that, thanks to a prior increase in assessed contributions and funds secured through WHO’s Investment Round, $2.6 billion, 60% of the budget has been secured.
However, a $1.7 billion funding gap remains, posing a significant challenge in the current global financial landscape.
To address these constraints, WHO is undergoing a major structural realignment, described by some member states as “lean and mean” but by Tedros as “more focused” and potentially “more impactful.”
Impact of U.S. Withdrawal
The U.S. decision to withdraw from WHO, the organization’s largest donor, has significantly worsened the organization’s financial outlook.
The loss of U.S. funding has forced WHO to reassess its priorities, with Tedros urging member states to approve further increases in assessed contributions to ensure long-term financial sustainability.
Looking Ahead
As the 78th World Health Assembly progresses, member states will deliberate on the proposed budget and structural changes.
Tedros stressed the importance of securing WHO’s independence and sustainability, noting that a previous funding increase averted a $300 million worse scenario.
However, the remaining budget gap and workforce reductions signal a challenging period ahead for global health initiatives.
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