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Thursday, Jul 03, 2025

U.S. Funding Freeze Hits UN Food Agency, Disrupting Aid Operations Globally

U.S. Funding Freeze Hits UN Food Agency, Disrupting Aid Operations Globally

The United Nations Food and Agriculture Organization suspends critical projects after the U.S. halts its $300 million annual funding.
The Food and Agriculture Organization (FAO), based in Rome, has announced the suspension of various aid projects in countries experiencing crises, including Afghanistan and those in the Horn of Africa.

This decision follows the recent freeze on approximately $300 million in annual funding by the U.S. government under the Trump administration.

Internal documents and employee reports indicate that this development is significant, as the funding from the U.S. represents around 14 percent of the FAO's total budget, which amounted to $307 million in the prior year.

The suspension of these projects is anticipated to exacerbate food insecurity in regions that are already grappling with the consequences of climate change, conflict, and economic challenges.

This has raised concerns among humanitarian experts regarding the long-term impact of reduced agricultural aid, potentially leading communities to become more reliant on emergency food supplies.

An internal memo dated January 31 directed FAO staff to immediately halt all project activities funded by the U.S., stopping any new financial commitments.

Consequently, FAO field offices have begun terminating contracts, freezing recruitment, and delaying critical agricultural and food security initiatives.

This pause echoes similar funding challenges faced by other UN agencies, including the World Food Programme (WFP), which has reported office closures and severe reductions in food aid for vulnerable populations worldwide.

The FAO's operational issues have not gained the same level of public attention as those of the WFP, despite their collaborative nature.

The FAO typically provides technical assistance and promotes agricultural practices, while the WFP focuses on food distribution during crises.

A senior official connected to the fieldwork noted the broad implications of these funding cuts, emphasizing that the U.S. is a critical donor for many humanitarian organizations.

Without the $300 million, the disruption in aid could potentially render millions in crisis, particularly in nations like Afghanistan and Sudan, significantly increasing the risk of hunger.

The U.S. funding freeze is emblematic of a larger trend within U.S. foreign aid policy, which has seen significant cuts to programs administered through the U.S. Agency for International Development (USAID) and the State Department.

Figures indicate that the Trump administration has reduced USAID programs by 83 percent, canceling over 5,200 contracts and displacing thousands of aid workers.

U.S. Secretary of State Marco Rubio articulated a shift in U.S. foreign aid strategy, stating that funding would be redirected away from multilateral programs perceived as not serving U.S. interests.

In light of this aid freeze, employees at the FAO have reported an atmosphere of anxiety and uncertainty, as funding prospects remain unclear.

The suspension has caused essential project activities—such as seed distribution and agricultural training—to either be delayed or completely put on hold.

Some FAO staff have indicated that the layout may result in hundreds of job losses, with estimates suggesting that it could potentially exceed 1,000 layoffs depending on the duration of the funding freeze.

The FAO's management has requested staff to refrain from discussing the financial situation publicly, further compounding the stress within the organization.

As the FAO evaluates the implications of the U.S. funding cuts, it has acknowledged potential consequences for its global food security initiatives.
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