US weighs cutting ties with UN refugee agency, sources say

The Trump administration has in recent weeks considered cutting ties with the United Nations refugee agency, prompting a lobbying effort by diplomats and aid officials to preserve U.S. support, sources familiar with the matter told Reuters.

Eight sources, including diplomats, aid officials and a congressional source, said Washington—historically the largest donor to the UN High Commissioner for Refugees (UNHCR)—has been weighing disengagement. A decision had been expected last week but was not announced, suggesting lobbying efforts may have delayed or averted the move.

The deliberations follow a dispute over last month’s appointment of U.S. career diplomat Tressa Rae Finerty as UNHCR’s deputy high commissioner. U.N. Secretary-General Antonio Guterres and High Commissioner for Refugees Barham Salih selected Finerty over U.S.-backed candidate Simon Hankinson, who has criticised the agency’s approach to migration.

“If they wanted reform, a return to UNHCR’s original mission of helping actual refugees, and a careful inspection of budgets and spending, I was the guy,” Hankinson told Reuters, calling Finerty a “business as usual” candidate.

Sources said UNHCR had warned supporters it could face a U.S. funding cutoff and possible withdrawal from its governing Executive Committee. “People have been alerted by UNHCR to call friends in the administration,” a source at an aid group said. “They are at least thinking about it.”

A State Department spokesperson said there had been no changes to U.S. engagement. “As with many other international organisations, we work with and through UNHCR when doing so is useful to advance U.S. foreign policy interests or save lives.”

The United States contributed $868 million to UNHCR in 2025—about a quarter of its total funding. Any withdrawal would significantly weaken the agency at a time of near-record global displacement driven by conflicts including Ukraine and Sudan, diplomats said.

UNHCR is already facing financial strain, with funding down roughly 30% in 2025 compared with 2024, forcing job cuts and further reductions this year.

“Rethinking it would be an existential threat for UNHCR,” a former senior official said. “It could have a massive knock-on effect.”

By Tamilla Hasanova