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Originally published by Capital News
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December 30, 2025
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US ends ‘projectized grants’ in new UN deal, shifts to country-level pooled model

US ends ‘projectized grants’ in new UN deal, shifts to country-level pooled model

The US is reshaping how it funds UN humanitarian aid, shifting to pooled financing to boost impact, cut costs and tighten oversight...

✨ Key Highlights

The United States has signed a new pact with the United Nations, ending "projectized grants" for humanitarian aid and shifting to a country-level pooled funding model. This new approach aims to increase efficiency and accountability, providing an initial anchor commitment of $2 billion for 2026.

  • The US State Department announced the shift from fragmented project-based grants to flexible, country- and crisis-level pooled funds administered by OCHA.
  • The US expects this overhaul to nearly double the life-saving impact of each dollar spent and generate almost $1.9 billion in savings for US taxpayers.
  • UN humanitarian chief Tom Fletcher welcomed the deal, calling it "a powerful act of leadership and generosity that will help save millions of lives."
  • For African countries, including Kenya, this shift could mean faster disbursement and greater flexibility in addressing humanitarian needs like drought response and refugee operations.

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