USAID Cuts Trigger UN’s ‘Worst Liquidity Crisis Since Inception’
Internal U.N. emails obtained by Digital reveal that cuts to USAID funding, influenced by President Donald Trump’s administration’s policies, are significantly affecting the United Nations Department of Safety and Security (UNDSS).
Milan Victor Dawoh, president of the U.N. Field Staff Union, stated in an email that the USAID funding reduction led to the removal of approximately $30 million from extra-budgetary resources, resulting in substantial staff reductions.
Dawoh warned that the U.N. is facing its most severe liquidity crisis since its inception, with the situation expected to worsen.
According to Dawoh, UNDSS will lose 100 employees and its presence in 35 to 45 countries, while establishing “regional hubs” in the remaining 120 countries where it will operate.
The email emphasizes that UNDSS is a risk management and analysis entity, not a protection agency, and that this should be clearly communicated to staff.
describes UNDSS as a global leader in security risk management, facilitating the safe and effective delivery of U.N. programs in challenging environments while maximizing resources.
Digital’s inquiries to Dawoh regarding the email’s authenticity and the proportion of the UNDSS budget funded by USAID went unanswered.
Earlier this month, António Guterres cautioned against cuts to U.S. spending at the U.N., asserting that such cuts would negatively impact global health, safety, and prosperity.
Farhan Haq, Deputy Spokesman for António Guterres, indicated that UNDSS received approximately $20 million from USAID last year. He confirmed that some funding has been terminated, while other projects will continue with USAID support.
While Dawoh’s email links the funding loss to a cut in extra-budgetary resources, Haq stated that this constitutes a small portion of the department’s budget, primarily funded by the U.N. regular budget, a cost-sharing mechanism, and the peace support account.
Haq noted that UNDSS has 2,250 personnel worldwide, supporting the security of 180,000 U.N. personnel, with the majority in the field. He emphasized the need for effective security for U.N. personnel serving in dangerous areas.
Haq clarified that the temporary closure of a staff entrance at U.N. headquarters, mentioned in a previous email to , was unrelated to UNDSS and USAID funding, instead attributing it to member states’ non-payment of dues.
An anonymous U.N. source expressed concern that U.N. staff are fearful about their future amid financial uncertainty, including concerns about pensions and access to credit union accounts. The source suggested that job losses could impact the visa status of staffers, potentially affecting their ability to remain in the U.S.
“This is an implication beyond just losing the jobs of individuals. It impacts families, and this could be massive in the coming weeks with new cuts that will impact U.N. agencies.”
Digital’s request for comment from the State Department regarding the impact of layoffs on employees went unanswered.
Calls for U.N. reform follow Trump’s executive order to review funding to the U.N., citing the organization’s “tremendous potential” but perceived mismanagement.
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