More than US$726 million in funding to combat child labour, modern slavery and workplace repression is set to be eliminated under cuts pushed by the Trump administration, according to Equal Times. Experts warn the move will accelerate worker exploitation, union-busting and forced labour. Kelly Fay Rodriguez, former US Special Representative for International Labour Affairs, said the cuts strip away critical protections for vulnerable workers, leaving activists and frontline defenders of labour rights exposed to grave risks.
The bulk of the cuts include US$577 million for labour rights programmes under the Bureau of International Labor Affairs, US$43 million from the State Department’s Bureau of Democracy, Human Rights and Labor, US$17.5 million from USAID labour funding, and the cancellation of major labour grants in Bangladesh and Cambodia. Programmes targeting human trafficking also lost around US$59 million. In addition, the White House briefly announced the removal of US$107 million in contributions to the International Labour Organization (ILO), before withdrawing the statement without explanation. Despite the reversal, the US currently owes the ILO US$173 million in arrears, raising concerns that future cuts could push the total lost funding beyond US$1 billion.
Civil society leaders argue the decision threatens global safeguards against forced labour and human trafficking. Oxfam America’s Irit Tamir described the cuts as an “immeasurable threat to the most vulnerable,” warning that removing oversight from global supply chains could undermine trade agreements and encourage a race to the bottom in labour standards. Organisations such as China Labor Watch, which monitors working conditions in China, are already facing uncertainty about their survival, which could further silence exploited workers and weaken enforcement of US forced labour laws.
The crisis comes against a backdrop of worsening global labour conditions. The ILO reports that modern slavery increased by 20 per cent between 2016 and 2021, affecting 50 million people worldwide. Child labour, though reduced in 2024, still affects 138 million children, including 54 million engaged in hazardous work. These challenges were central to the UN’s Sustainable Development Goals, but with the US retreating from global labour priorities, progress toward the 2025 and 2030 targets looks increasingly unlikely.
The funding rollback is part of a wider global shift. Human rights spending is projected to decline by up to US$1.9 billion next year, a 31 per cent fall from 2023 levels, according to the Human Rights Funders Network. In Europe, the UK has slashed its aid budget by 40 per cent, the EU has reduced development assistance by over 7 per cent, and Sweden’s far-right government has cut €163 million, threatening the work of hundreds of unions. Labour advocates fear these reductions will weaken grassroots organising, undermine democracy, and worsen inequality, particularly in Africa and Latin America.
Critics also highlight the growing emphasis on “aid for trade,” which prioritises national economic gain over human rights and workers’ protections. While donor funding for unions has raised questions about dependency and accountability, labour leaders argue that eliminating support altogether risks dismantling the progress made toward strengthening global labour rights. As Swedish labour leader Oscar Ernerot warns, treating aid as a cost rather than an investment undermines democracy, fuels instability and increases inequalities, while leaving workers worldwide without the means to defend their rights.
