Mapping of Multilateral Organisations' Response to the Current Funding Environment

ODA from OECD-DAC countries fell by 9% in 2024, with a further 9-17% decline projected for 2025. The survey confirms that the impacts have been felt across UN agencies and other multilateral organisations. Across 18 respondents, all but 3 had received formal notice of funding reductions from donors, 14 for 2025, 12 for 2026 and 8 for 2027. The majority (13) were anticipating declines in voluntary contributions. While assessed contributions are compulsory, six entities reported anticipating a decline in such contributions. This reflects the situation of entities that either depend on the UN regular budget – with its more recent proposal already incorporating the foreseen reductions for 2026 – or specialised agencies that anticipate or have received formal notifications of withdrawal or cessation of assessed contributions by Member States. For instance, WHO reported that the United States formally notified its intention to withdraw and ceased paying its assessed contribution for 2024 and 2025. 

These results show that the funding crisis is not limited to recent declines in voluntary contributions; it is already exerting severe pressure on core resources, with many agencies facing immediate shortfalls, and anticipating deepening and prolonged constraints in their core budgets across successive funding cycles. 

Among the 18 respondents, 4 anticipated a reduction of between 11% and 20% and 6 anticipated a reduction of between 21% and 30%, while 1 reported a cut of up to 50%. Four were unable to estimate the extent of reduction.

The mapping of MO public announcements on budget cuts extends available information to 31 organisations. It indicates that 24 (77%) have made public statements about anticipated funding cuts. Of the remaining six, five are anticipating increased funding over the coming period, while one has not released any information. The announced budget reductions range from a modest 8% shortfall for UNESCO, attributed to the US withdrawal but mitigated by diversifying the donor base​ (UNESCO, 2025_[14])​, to a drastic 60% funding cut for UNAIDS​ (Ravelo, 2025_[15])​.  

Many agencies are also anticipating substantial core budget cuts in upcoming funding cycles. For example, while UNDP has not yet experienced a 2025 shortfall, it is planning for a 33% reduction in its core budget in the next cycle​ (UNDP, 2025_[16])​. UNICEF, in its new strategic plan 2026-2029, is projecting at least a 20% decline in income, necessitating a corresponding reduction in core budgets​ (UNICEF, 2025_[17])​. WHO reported an income gap of USD 600 million, covering 60% of its planned budget, and is proposing a substantial 21% cut for the 2026-2027 biennium (reducing its budget from USD 5.3 billion to USD 4.2 billion)​ (MOPAN, 2025_[18])​. This is compounded by a salary funding gap of USD 500 million, requiring the organisation to tap into its reserves to ensure continued payment for staff and separation costs​ (WHO, 2025_[19])​.

Based on publicly available information, only five entities in the sample (IDB, IFAD⁶, ADB, UNIDO, and EBRD) have not announced any current or planned budget cuts. ADB’s 2025 program and operational budget reflect sustained growth​ (ADB, 2025_[20])​, while EBRD’s shareholders have approved a EUR 4 billion capital increase to expand its investment envelope​ (European Bank for Reconstruction and Development, 2025_[21])​.

These results show that the funding cuts being experienced by MOs in 2025 are likely to be just the beginning of a downward trend that could last several years, as anticipated reductions in global ODA flows play through. The cuts are likely to affect both core budget and voluntary income streams in the years ahead.

For the time being, the most serious cuts are falling on the UN system, with serious consequences for its operational agility and strategic effectiveness, including its core normative mandates in some cases. The impact is particularly acute for entities such as UNHCR, WFP and UNDP​ (Dag Hammarskjöld Foundation, 2025_[5])​, which are both the largest recipients of earmarked funding in the UN system and accounted for most of the USD 8.6 billion contraction in earmarked revenue between 2022 and 2023. They rely heavily on earmarked funding and have large-scale operational portfolios, making them especially vulnerable to sudden reductions that limit their flexibility to reallocate resources across programmes or regions to manage cash shortfalls​ (UNSDG System-Wide Evaluation Office, 2024_[22])​. For many UN entities, non-core contributions peaked in 2020 due to the rapid COVID-19 response. Non-core funding then returned to pre-COVID-19 response levels for several organisations. For example, non-core funding for UNDP stabilised around USD 4.5 billion (USD 4.2 billion – USD 4.7 billion) between 2021 and 2024. Meanwhile, UNDP’s core resources have continued to decline over the years.

A SWEO ​(UNSDG System-Wide Evaluation Office, 2025_[23])​ evaluation finds that persistently high levels of earmarking and fragmented funding flows remain significant impediments to unified country-level results, limit UN teams’ flexibility and ability to adapt to context, and increase transaction costs for collective work. Donor funding behaviours have a strong influence on the effectiveness of reforms and the timely, co-ordinated delivery of results.