UN reduces food aid to West Bank and Gaza amid funding shortfall

International aid organisations are facing a severe funding shortfall after the United States announced a 30 percent reduction in its overseas humanitarian budget for the 2025 fiscal year, a move that has prompted a broader decline in contributions from other Western donors. The cut, part of a larger U.S. spending review aimed at reallocating resources to domestic priorities, reduces the annual disbursement from the United States Agency for International Development (USAID) to $6 billion, down from $8.5 billion in the previous cycle. European governments have responded with modest increases, but the overall pool of Western aid has shrunk by an estimated $4 billion, according to a joint report from the International Aid Transparency Initiative and the World Bank.

The funding gap threatens ongoing operations in several high‑need regions, including food‑security programs in the Horn of Africa, health initiatives combating cholera in Yemen, and shelter projects for displaced populations in Ukraine. NGOs such as Médecins Sans Frontières and the International Rescue Committee have warned that project delays and reductions could exacerbate humanitarian crises, potentially leaving up to 2 million people without essential services. Donor agencies are urging alternative financing mechanisms, including private‑sector partnerships and multilateral appeals, to mitigate the shortfall while governments reassess budget allocations.