Geneva: The International Labour Organization (ILO) is facing a period of heightened uncertainty following the Trump administration's proposal to cut $107 million in U.S. funding, a move that could significantly impact the agency's operations and staff stability. The United States, which accounts for roughly 22% of the ILO’s regular budget, has also not paid its dues for 2024 and 2025, further intensifying concerns over financial viability.
Earlier this year, the ILO had already reduced its workforce by about 225 positions due to financial pressures. The newly proposed funding reduction is part of a broader $4.9 billion cut to U.S. foreign aid, raising fears among staff that additional layoffs may be imminent. The organization’s ability to continue promoting labor rights, setting international labor standards, and supporting vulnerable workers around the globe could be jeopardized if the funding is not restored.
Gilbert F. Houngbo, ILO Director-General, highlighted the lack of clarity surrounding the proposal, noting that discussions with U.S. officials are ongoing to determine whether the cut applies to the 2025 contributions, the entire 2024–2025 biennium, or future contributions. The uncertainty has left staff members anxious about both their employment prospects and the organization’s operational capacity.
Internal concerns have also arisen over a White House statement suggesting that the ILO “works to unionize foreign workers and punish U.S. corporate interests abroad.” Staff members emphasized that such characterizations misrepresent the agency’s mission, which is focused on promoting fair labor standards, decent work, and social protection worldwide.
Observers note that the proposed U.S. cuts may have broader implications beyond the ILO. As a key contributor to international labor and humanitarian efforts, the United States plays a central role in sustaining global organizations that promote workers’ rights. The ongoing uncertainty underscores how shifts in U.S. foreign aid policy can ripple across international institutions, potentially affecting vulnerable populations dependent on ILO programs.
The coming weeks are likely to be crucial, as ILO leadership continues discussions with U.S. authorities and explores contingency plans to ensure the continuity of its mission amidst financial pressures.