ILO withdraws U.S. official’s appointment amid funding dispute
The International Labour Organization (ILO) has withdrawn the appointment of a senior United States official to its deputy director-general position, citing delays in U.S. financial contributions.
In a statement to Reuters on Monday, the agency confirmed that Sheng Li would no longer take up the role in July as previously planned.
The U.S. Department of Labor had not immediately responded to requests for comment.
Li was appointed in April after months of postponement, but the ILO later informed Washington that the appointment would proceed only if the United States cleared its outstanding payments.
The organization said the decision does not prevent the U.S. from regaining its position as the largest contributor if it settles its arrears.
The ILO, which is facing financial strain, has already implemented hiring freezes and restricted non-essential travel, and is considering relocating some operations to reduce costs. It has not yet detailed the full impact of its budget constraints.
Diplomatic sources say the U.S. has been asked to pay at least $50 million of its outstanding contributions, adding pressure to the agency’s already fragile financial position. The United States typically provides about 22% of the ILO’s budget, making it its largest donor.
According to the agency’s records, the U.S. owes about 257 million Swiss francs ($328 million) in total arrears from 2024 to 2026.
One diplomat described the situation as an ultimatum, though the ILO denied issuing one. Staff members have warned that continued non-payment could trigger severe budget shortfalls, potentially forcing job cuts and emergency cost-saving measures.
The ILO is expected to provide an updated financial outlook at a mid-June meeting.
Li’s nomination followed the withdrawal of former White House economic official Nels Nordquist earlier in April.
Source: Reuters
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