International Labour Organisation staff fear job losses as Trump proposes $137 million cut

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FILE PHOTO: U.S. President Donald Trump leaves, following a cabinet meeting, at the White House in Washington, D.C., U.S.,  August 26, 2025. REUTERS/Jonathan Ernst/File Photo

US President Donald Trump has moved to unilaterally cancel billions of dollars in foreign aid authorised by Congress for a number of international programmes.

PHOTO: REUTERS

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GENEVA – The International Labour Organisation (ILO) is assessing the impact of a US$107 million (S$137.4 million) funding cut proposed by the Trump administration to the Geneva-based UN agency, according to an internal message reviewed by Reuters.

Staff at the ILO, which promotes international labour rights, told Reuters there are fears of further job cuts as the US, which contributes 22 per cent of the ILO’s regular budget, seeks to row back over funding.

US President Donald Trump has moved to unilaterally cancel US$4.9 billion in foreign aid authorised by Congress for a number of international programmes, including a US$107 million cut to the ILO, a White House statement said on Aug 29.

In the internal note sent to staff, ILO director-general Gilbert Houngbo said he lacks “full clarity” on the cut’s implications and is in contact with the US administration.

He told staff that the US, the agency’s largest donor, had yet to pay its 2024 and 2025 dues.

“Specifically, we are seeking to understand if this reduction applies to the ILO’s assessed contributions for 2025, the entire 2024/2025 biennium, or future contributions,” the memo added.

The ILO was not immediately available for comment.

Its US$930 million total two-year budget for 2026 to 2027 was approved in June.

A ILO staff member told Reuters that the “considerable cut” could put staff jobs at risk.

The staff member said colleagues were also upset by the White House statement which said the organisation “works to unionise foreign workers and punish US corporate interests abroad”, and said it misrepresented the agency’s values.

The White House was not immediately available for comment.

The Trump administration intends to implement the cuts through a “pocket rescission”, a tactic to bypass Congress.

Reuters reported on Aug 29 that Mr Nels Nordquist, a top economic aide to Mr Trump, is slated to leave the White House to become deputy director-general at the ILO, replacing a former Biden administration official.

In May, the ILO confirmed it had cut 225 jobs at its headquarters and in the field. REUTERS

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