Funding Crisis Looms Over ILO as U.S. Cuts Contributions
The International Labour Organization faces a significant funding challenge following a $107 million cut proposed by the Trump administration. As the U.S. seeks to retract a portion of foreign aid, there are concerns about job security at the ILO, which is heavily reliant on U.S. contributions.
The International Labour Organization (ILO) might face severe financial constraints due to a proposed $107 million funding cut by the Trump administration, according to an internal communication reviewed by Reuters. The Geneva-based U.N. agency, committed to promoting international labour rights, is apprehensive about potential job losses amidst diminishing U.S. fiscal support.
The proposed cuts come as part of a broader strategy by President Donald Trump to retract $4.9 billion in foreign aid. The ILO's Director-General, Gilbert F. Houngbo, has informed staff of the uncertainty surrounding these budgetary changes, citing the need for further clarification from the U.S. administration.
The potential reduction raises tension among ILO staff, driven by fears of job cuts and dissatisfaction with statements from the White House that alleged the ILO works against U.S. corporate interests. Compounding the situation, the ILO approved a $930 million budget for 2026-2027, amid potential instability in future funding sources.
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