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Home Feature Economy

UN Faces Funding Crisis After US Suspends Foreign Aid for 90 Days

The Global Economics by The Global Economics
January 29, 2025
in Economy, Funds, USA
Reading Time: 4 mins read
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UN Faces Funding Crisis After US Suspends Foreign Aid for 90 Days

UN Faces Funding Crisis After US Suspends Foreign Aid for 90 Days

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Latest figures for 2024 show that the US has given $2.49 billion in funds to UNHCR.

United Nations (UN), an intergovernmental organization that aims to maintain international peace and security, has started cutting back its international aid operation after the US government imposed a 90-day suspension on all foreign aid.

Filippo Grandi, the head of the United Nations High Commissioner for Refugees (UNHCR), which provides life-saving aid to the 122 million people who are forcible displayed from homes across 136 countries, sent an email to staff members asking for an immediate cut down on spending.

It includes a 90-day delay in ordering new supplies unless there is an emergency, a hiring and contracting freeze,  and suspension on all international air travel.

Marco Rubio, the country’s new secretary of state, assured that the US freeze would not impact life-saving help like core medicines, food, shelter, and supplies. He asserted that the freeze focuses on programs with abortion, family planning, or gender ideology.

Trump’s US funding suspension has reduced operations and fire workers in humanitarian assistance programs, except for military assistance to Egypt and Israel and emergency food programs.

Latest figures for 2024 show that the United States has given $2.49 billion in funds to United Nations High Commissioner for Refugees.

Rubio’s decision to suspend Trump financing comes at the same time when many people have displayed because of violence or instability since World War II.

The US government put 60 senior officials at the US Agency for International Development (USAID) on leave on suspicion that they have assisted humanitarian organizations in navigating the freeze.

State Department spokesperson Tammy Bruce stated that US foreign aid bureaucracy and industry have been out of step with American interests and, in many cases, are incompatible with American ideals. He claims they spread beliefs abroad that are directly inverse to spreading peace and stability inside and between nations and works to undermine international peace.

White House spokesperson stated in a press conference that 50 million taxpayer dollars were used to fund condoms, which is an absolute waste of taxpayer money. So, that’s the focus of this pause to ensure that tax funds are used responsibly.

Jason Gray, who is currently the acting administrator and formerly chief information officer (CIO), claimed that they have noticed that some of the USAID actions were aimed at bypassing the president’s executive orders and expectations of the American citizens.

He added that was the reason for putting many USAID employees on administrative leave with full pay and benefits until a complete analysis of their actions.

Current and former USAID officials have warned that stopping work order issues could put millions of people at risk, especially when it came along with natural catastrophes like earthquakes or floods.

Former senior USAID official questioned the uncertainty if any natural calamity hit and it would be challenging to protect all the people. He finds it concerning when there is a waiting period of 90 days and no clarity on what next.

On Tuesday, the state department announced that they are investigating “egregious funding,” which included $102,236,000 allocated to support the International Medical Corps in Gaza, $16,840,876 assigned for institutional contractors in the gender development office, and $612,000 reserved for technical assistance for family planning programs in Latin America.

The sweeping actions taken in the early days of the Trump administration are creating friction with US allies. On Tuesday, the French representative at the UN Security Council criticized the Israeli government for implementing a ban on operations by the UN relief agency for Palestinian refugees, Unrwa, which is a stance strongly backed by the Trump administration.

Nicolas de Rivière stated that there is no alternative to Unrwa, which plays a humanitarian role and provides public services.

He stated a day after Trump was amazed about moving Gaza’s Palestine to Jordan or Egypt that the Gaza Strip might be the future of Palestine, adding that Saudi or France will host an international conference in New York to find a two-state solution for the Israeli-Palestine conflict.

Tags: GazaTrumpUnited Nationsus
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