HomeWorld NewsDOGE USAID Budget Cuts Push UN Into 'Worst Liquidity Crisis Since Its Establishment'

DOGE USAID Budget Cuts Push UN Into 'Worst Liquidity Crisis Since Its Establishment'

Sarah Johnson

Sarah Johnson

March 22, 2025

6 min read

Brief

Trump administration's cuts to USAID funding, linked to Elon Musk's DOGE initiative, spark UN's worst liquidity crisis, leading to layoffs, downsizing, and calls for reform.

President Donald Trump's administration has stirred up a storm at the United Nations with its decision to use Elon Musk's DOGE initiative to slash USAID funding. The move has created ripples far beyond U.S. borders, triggering what the UN is now calling the "worst liquidity crisis since its establishment." Ouch.

According to internal emails obtained by Fox News Digital, Milan Victor Dawoh, president of the U.N. Field Staff Union, painted a grim picture early Friday morning. He revealed that the USAID funding cuts have siphoned off approximately $30 million from the UN’s extra-budgetary resources. The result? Job losses, drastic downsizing, and a whole lot of worried faces in the halls of the UN.

Dawoh's email outlined that the UN Department of Safety and Security (UNDSS) is shedding 100 employees, pulling out of operations in 35 to 45 countries, and consolidating into "regional hubs" across the remaining 120 nations. It’s a significant shift for a department tasked with ensuring the safety of 180,000 UN personnel worldwide.

To add to the drama, António Guterres, the UN Secretary-General, recently sounded the alarm over U.S. funding cuts. He warned that such actions could make the world "less healthy, less safe, and less prosperous." A bit hyperbolic? Maybe. But when you’re facing a budget crunch this severe, who can blame him?

Farhan Haq, Deputy Spokesman for Guterres, confirmed that USAID provided around $20 million to UNDSS last year, though he downplayed its significance, saying it was a "relatively small proportion" of the department’s budget. The bulk of their funds, he noted, come from the UN regular budget, cost-sharing mechanisms, and peace support accounts.

Still, the ripple effects are undeniable. A confidential UN source shared that staff members are fearful for their futures—concerned about everything from pension access to visa issues, especially for those on G-4 visas. Losing a job is bad enough; losing your ability to stay in the country? That’s a whole new level of stress.

The Trump administration’s stance on the UN has been clear for some time. Last month, the president signed an executive order calling for a review of U.S. funding to the UN, stating that while the organization has "tremendous potential," it’s "not being well run." Bold words, but they’ve certainly set the stage for what’s unfolding now.

Amidst all this turmoil, calls for UN reform are growing louder. But whether those calls will translate into meaningful changes—or just more political theater—remains to be seen. One thing’s for sure: the UN is in for a bumpy ride.

Topics

Trump administrationUSAID cutsUN liquidity crisisElon Musk DOGEUnited Nations fundingUN layoffsUNDSS downsizingAntónio GuterresUN reforminternational aidPoliticsUnited NationsGlobal Affairs

Editor's Comments

So, let me get this straight: a cryptocurrency-themed initiative is at the heart of a budget cut that’s shaking up one of the world’s largest international organizations? You can’t make this stuff up. The whole situation feels like a bizarre mash-up of Wall Street and global diplomacy, and honestly, the stakes couldn’t be higher. But hey, maybe this will finally push the UN to clean up its act—assuming they survive the chaos first.

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