The World Health Organization (WHO) has announced a looming salary gap of more than $500 million for its upcoming biennium, placing significant strain on its global health operations and prompting sweeping cost-cutting measures. This financial shortfall was revealed by WHO Director-General Dr. Tedros Adhanom Ghebreyesus during the high-level welcome session of the 78th World Health Assembly in Geneva, Switzerland, held under the theme “One World for Health.”
In a frank address, Dr. Tedros appealed to WHO Member States to approve a further increase in assessed contributions to help close the funding gap and steer the organization towards financial independence. He warned that the current financial pressures have already forced WHO to implement drastic austerity measures across its operations.
WHO Cuts Costs to Bridge Financial Gap
Dr. Tedros outlined a range of measures WHO has enacted in response to the funding crisis. These include reductions in travel, procurement, recruitment, and early retirement initiatives. Despite these cost-saving efforts, he acknowledged that they have not been sufficient to eliminate the salary deficit, which still exceeds half a billion dollars for the next two-year budget cycle.
“We are doing this reduction carefully, to protect the quality of our work, and ensure that we are positioned to emerge from this crisis stronger, more empowered and more independent,” Tedros said. He noted that while the previous increase in assessed contributions had helped narrow the deficit by $300 million, the financial situation remains dire.
Restructuring and Staff Cuts Underway
Dr. Tedros disclosed that WHO is undergoing a significant organizational restructuring to align its resources with priority areas. He has already announced a new executive management team and plans to finalize departmental leadership decisions in the coming weeks. However, he admitted that these structural changes come with difficult trade-offs, including reductions in the workforce.
“This was an extremely difficult decision for me, as it is for every manager in our organization who is having to decide who stays, and who goes,” he said, acknowledging the human cost of the crisis.
He stressed that with fewer staff, the organization will inevitably be forced to scale back its ambitions: “Let’s be clear: a reduced workforce means a reduced scope of work. The Organisation simply cannot do everything Member States have asked it to do with the resources available.”
Reduced Budget for 2026–2027
WHO has now proposed a significantly trimmed programme budget of $4.2 billion for the 2026–2027 biennium, representing a 21% reduction from the originally planned $5.3 billion. The revised budget reflects the scale of the funding shortfall and the organization’s strategic decision to prioritize core functions over expanded activities.
Despite this reduction, WHO has already secured commitments for over $2.6 billion, or approximately 60% of the proposed budget, assuming the next increase in assessed contributions is approved. However, Dr. Tedros cautioned that an estimated $1.7 billion funding gap remains, warning that raising the remaining funds in today’s challenging financial climate will not be easy.
U.S. Withdrawal Deals Heavy Blow
The budgetary strain has been further compounded by the withdrawal of the United States from WHO membership. The U.S. government’s decision has left a significant void, given that it was WHO’s largest contributor. During the 2022–2023 biennium alone, the United States provided $1.284 billion through both assessed and voluntary contributions, making it the single most important donor to the global health agency.
The departure of such a major partner is expected to significantly disrupt WHO’s funding structure and may force the organization to rely more heavily on contributions from other member states or private donors. It also casts uncertainty over future emergency responses and disease prevention programs that have historically benefited from U.S. support.
Striving for Financial Independence
Dr. Tedros reiterated WHO’s long-term goal of achieving financial stability and independence, emphasizing that the current crisis should serve as a catalyst for change. He urged member states to view their financial support not merely as contributions but as investments in global health security.
“Already, the first increase has made a huge difference. If it had not happened, our current financial situation would be much worse,” he said. “This week, I ask you to approve the next increase, to make another step towards securing the long-term financial sustainability and independence of your WHO.”
Dr. Tedros also pushed back against criticism of WHO’s restructuring efforts, particularly from those who referred to the new organizational model as “lean and mean.” Instead, he described the new structure as more focused and potentially more impactful.
The Path Forward
As WHO faces its most significant funding challenge in recent years, the outcomes of this week’s World Health Assembly could shape the agency’s trajectory for the rest of the decade. Stakeholders will need to weigh the costs of budget cuts against the risks of weakening the world’s leading public health institution at a time of ongoing global health threats.
Public health experts warn that failure to adequately fund WHO could limit its ability to respond to future pandemics, support vaccine programs, and lead international coordination efforts in health emergencies. At the same time, the need for transparency and fiscal discipline will remain paramount as the organization undergoes one of its most substantial restructurings in modern history.
Whether WHO can weather the storm without losing the trust of its global partners and the communities it serves remains to be seen. What is clear, however, is that the organization stands at a critical crossroads—one that will require difficult decisions and stronger commitments from the international community.
