UNICEF projects 20% drop in 2026 funding after US cuts

UNICEF has projected that its 2026 budget will shrink by at least 20 per cent compared to 2024, a spokesperson for the UN children's agency said on Tuesday, after US President Donald Trump slashed global humanitarian aid.

In 2024, UNICEF had a budget of $8.9 billion (AED 33 billion) and this year it has an estimated budget of $8.5 billion (AED 31 billion). The funding for 2025 is "evolving," the UNICEF spokesperson said.

"The last few weeks have made clear that humanitarian and development organizations around the world, including many UN organisations, are in the midst of a global funding crisis. UNICEF has not been spared," said the spokesperson.

UNICEF did not specifically name the US, but Washington has long been the agency's largest donor, contributing more than $800 million (AED 3 trillion) in 2024. Since UNICEF was established in 1946, all its executive directors have been American.

"At the moment, we are working off preliminary projections that our financial resources will be, at a minimum, 20 per cent less, organisation wide, in 2026 compared to 2024," said the UNICEF spokesperson.

Since returning to office in January for a second term, Trump's administration has cut billions of dollars in foreign assistance in a review that aimed to ensure programs align with his "America First" foreign policy.

The UN Office for the Coordination of Humanitarian Affairs said last week that it will cut 20 per cent of its staff as it faces a shortfall of $58 million (AED 213 million), after its largest donor, the United States, cut funding.

UN Secretary-General Antonio Guterres also last month said he is seeking ways to improve efficiency and cut costs as the world body turns 80 this year amid a cash crisis.

UNICEF has implemented some efficiency measures but "more cost-cutting steps will be required," said the spokesperson.

"We are looking at every aspect of our operation, including staffing, with the goal of focusing on what truly matters for children: that children survive and thrive," the spokesperson said. "But no final decisions have been taken."