Middle EastNews

Crypto Aid in Crisis: UN Agencies Reel from Trump’s Funding Freeze

In a stunning blow to the global humanitarian relief system, UN aid agencies have been forced to drastically cut back their operations in the wake of an unprecedented 90-day suspension of all US foreign assistance ordered by the Trump administration. The sweeping freeze, which caught the international community off guard, is already disrupting life-saving aid for over 122 million forcibly displaced people across 136 countries.

UN Refugee Agency Chief Orders Emergency Spending Clampdown

Filippo Grandi, head of the UN’s refugee agency UNHCR, immediately responded to the crisis by issuing an agency-wide directive to halt all non-essential spending. In an urgent email to staff, Grandi outlined drastic cost-cutting measures, including:

  • 90-day delay on ordering any new supplies, except in emergencies
  • Freezing all hiring and contract renewals
  • Suspending all international staff travel

The majority of UN agencies and international aid organizations are scrambling to adapt and maintain operations under the sudden funding freeze. While the US State Department claims the suspension targets only specific programs related to abortion, family planning, and “gender ideology,” the on-the-ground reality is that humanitarian aid is being slashed across the board, from emergency food to medical services to shelter.

We must proceed very carefully over the next few weeks to mitigate the impact of this funding uncertainty on refugees and displaced people, on our operations and on our teams.

Filippo Grandi, Head of UNHCR

Funding Freeze Compounds Historic Displacement Crisis

The Trump administration’s move could not come at a worse time, as the world faces the largest forced displacement crisis since World War II. Over 122 million people have been driven from their homes by war, violence, and instability. For humanitarian agencies already stretched to the breaking point, the loss of critical US support is a devastating blow.

The US has long been the single largest donor to UN relief efforts, providing a fifth of the UNHCR’s total budget in 2024 alone. Grandi emphasized that demonstrating the concrete impact of every dollar will be more important than ever as agencies navigate this new reality.

Allies Decry Trump’s “America First” Approach to Aid

The administration’s isolationist stance is sparking growing friction with key allies, many of whom view the aid suspension as reckless and destabilizing. At a tense UN Security Council meeting, the French envoy delivered a blistering rebuke of US policies:

There is no credible alternative to UN humanitarian agencies. They play an essential role in promoting stability and human dignity worldwide – and do so at a fraction of the cost of unilateral efforts.

Nicolas de Rivière, French UN Ambassador

With no end in sight to the global displacement crisis, and the looming threat of further cuts, UN officials and aid workers are bracing for a long and difficult road ahead. For the millions of vulnerable refugees and displaced people who depend on their support and protection, the future is more uncertain than ever.

The international community must come together to address this urgent humanitarian funding shortfall, before the delivery of vital, life-saving aid is crippled beyond repair. The human cost of abandoning the world’s most vulnerable in their hour of greatest need is simply too high to bear.