The new approach was unveiled on Tuesday, December 30, by the U.S. Ambassador to the United Nations, Mike Waltz, following the signing of a new Memorandum of Understanding (MoU) between the U.S. Department of State and the UN Office for the Coordination of Humanitarian Affairs (OCHA) in Geneva.
According to U.S. officials, the agreement introduces what Washington has described as a “new paradigm” for financing and overseeing UN humanitarian assistance worldwide.
The goal, they say, is to improve efficiency, reduce bureaucracy, and ensure better accountability for American taxpayer funds.
Under the revised framework, the U.S. will abandon the long-standing practice of issuing multiple project-based grants to individual UN agencies.
Under the revised framework, the U.S. will abandon the long-standing practice of issuing multiple project-based grants to individual UN agencies.
Instead, humanitarian funding will be pooled into flexible, country-level funds managed by OCHA and allocated based on emerging needs during specific crises.
The State Department noted that U.S. voluntary contributions to UN humanitarian agencies have increased sharply over recent years, reaching an estimated USD 8 billion (approximately Ksh1 trillion) annually.
The State Department noted that U.S. voluntary contributions to UN humanitarian agencies have increased sharply over recent years, reaching an estimated USD 8 billion (approximately Ksh1 trillion) annually.
Despite this growth, American officials have raised concerns about duplication of roles, rising administrative costs, and declining impact in some programmes.
“While U.S. contributions have risen dramatically, many UN bodies have drifted from their core mission,” the State Department said, citing inefficiencies and overlapping mandates among agencies operating in the same regions.
The new funding system will operate under comprehensive country-level policy agreements designed to align humanitarian assistance with U.S. priorities.
“While U.S. contributions have risen dramatically, many UN bodies have drifted from their core mission,” the State Department said, citing inefficiencies and overlapping mandates among agencies operating in the same regions.
The new funding system will operate under comprehensive country-level policy agreements designed to align humanitarian assistance with U.S. priorities.
These include what officials describe as “hyper-prioritised” life-saving interventions such as food aid, emergency healthcare, and protection for vulnerable populations, including refugees and displaced persons.
Kenya is among the countries expected to feel the impact of the new funding model. The country hosts extensive UN humanitarian operations linked to drought mitigation, refugee support in camps such as Kakuma and Dadaab, and responses to regional instability in the Horn of Africa.
Previously, U.S. humanitarian support in Kenya was largely disbursed through separate agreements with agencies such as the World Food Programme (WFP), the UN Refugee Agency (UNHCR), and UNICEF.
Kenya is among the countries expected to feel the impact of the new funding model. The country hosts extensive UN humanitarian operations linked to drought mitigation, refugee support in camps such as Kakuma and Dadaab, and responses to regional instability in the Horn of Africa.
Previously, U.S. humanitarian support in Kenya was largely disbursed through separate agreements with agencies such as the World Food Programme (WFP), the UN Refugee Agency (UNHCR), and UNICEF.
Each programme was negotiated independently, often resulting in multiple agencies operating in the same locations with similar objectives.
Under the new MoU, this system will be replaced by pooled funding administered by OCHA, allowing resources to be distributed more flexibly across sectors and agencies depending on real-time needs.
Under the new MoU, this system will be replaced by pooled funding administered by OCHA, allowing resources to be distributed more flexibly across sectors and agencies depending on real-time needs.
U.S. officials argue that this will reduce duplication and ensure faster responses during emergencies.
The State Department said the revamped model is designed to nearly double the life-saving impact of every U.S. dollar spent on UN humanitarian programmes while significantly cutting indirect and administrative costs.
American officials estimate that the new approach could save U.S. taxpayers up to USD 1.9 billion (about Ksh245 billion) compared to previous funding structures, largely through streamlined operations and tighter prioritisation.
As part of the agreement, the U.S. has committed an initial USD 2 billion (around Ksh258 billion) to support life-saving humanitarian assistance in dozens of countries in 2026, signalling continued engagement despite the stricter funding controls.
UN officials have welcomed the move, saying it reinforces accountability while preserving critical support for vulnerable populations.
The State Department said the revamped model is designed to nearly double the life-saving impact of every U.S. dollar spent on UN humanitarian programmes while significantly cutting indirect and administrative costs.
American officials estimate that the new approach could save U.S. taxpayers up to USD 1.9 billion (about Ksh245 billion) compared to previous funding structures, largely through streamlined operations and tighter prioritisation.
As part of the agreement, the U.S. has committed an initial USD 2 billion (around Ksh258 billion) to support life-saving humanitarian assistance in dozens of countries in 2026, signalling continued engagement despite the stricter funding controls.
UN officials have welcomed the move, saying it reinforces accountability while preserving critical support for vulnerable populations.
UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Tom Fletcher described the agreement as a shift toward clearer, more efficient funding mechanisms.
“At a time of immense global strain, this approach ensures that humanitarian resources are targeted, accountable, and focused on saving lives,” Fletcher said.
“At a time of immense global strain, this approach ensures that humanitarian resources are targeted, accountable, and focused on saving lives,” Fletcher said.
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