UN agency halts U.S. deputy appointment over $328 millions in debt

The International Labour Organization (ILO) has withdrawn the appointment of a senior U.S. official to a top leadership role because of delays in U.S. payments, according to a statement published on Monday (1 June).

Appointment withdrawn amid funding concerns

The UN agency said Sheng Li, who was appointed Deputy Director-General in April, will no longer take up the post in July as planned.

The ILO said the decision was linked to outstanding U.S. financial contributions and added that the appointment could be reconsidered if Washington settles its arrears.

The United States, traditionally the largest contributor to the ILO, provides around 22% of the organisation's budget. As of 29 May, it owed approximately 257 million Swiss francs (US$328 million) in unpaid contributions covering 2024, 2025 and 2026.

According to diplomats, the ILO has urged Washington to make at least US$50 million in payments, amid concerns about the organisation's liquidity and the possibility of further cost-cutting measures.

The U.S. Department of Labor did not immediately comment.

The Geneva-based agency is already facing financial pressures, including a hiring freeze and restrictions on non-essential travel, as it seeks to manage budget constraints.

The ILO is expected to provide an update on its financial position at a meeting in mid-June.

• UN at risk of 'imminent financial collapse' due to U.S. debt, warns Secretary-General Guterres

Why U.S. payments fall into arrears

U.S. arrears to UN agencies, including the ILO, are largely linked to the structure of U.S. foreign contributions, which depend on annual congressional appropriations.

The U.S. Government Accountability Office has previously reported that delays in budget approvals and continuing resolutions can slow payments to international organisations, contributing to temporary arrears even when funding is ultimately approved.

• UN: US has paid $160 million towards its $4 billion debt

Think tanks such as the Council on Foreign Relations note that U.S. funding for multilateral institutions can also fluctuate because of political disagreements in Congress over foreign assistance spending levels and oversight requirements.

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News United Nations The International Labour Organization United States Debt