Summary: The International Labour Organization (ILO) has said that the U.S. nominee for Deputy Director-General will not take up the post as previously planned in July because of delays in payments from the United States. The ILO said the appointment is conditional on the settlement of outstanding contributions, and discussions between the agency and the U.S. government are ongoing.
The ILO announced that Sheng Li, who was selected in April to fill the deputy leadership position, will not assume the role in July "as previously foreseen," the agency said in a statement. The rescission follows a period of payment delays by the United States that the ILO has identified as a barrier to proceeding with the appointment.
According to the ILO, the decision does not foreclose the possibility that the United States could clear its arrears and regain its status as the largest contributor in assessed contributions. The agency said it remains in discussions with U.S. officials about the outstanding amounts.
U.S. authorities have not provided a response to requests for comment about the decision, the ILO said. The agency noted that Sheng Li had been appointed after months of delay, but that the appointment has since been put on hold pending payment.
Three diplomats speaking with agency officials indicated that Washington has been asked to remit at least $50 million of the contributions it owes. Those remarks point to heightened uncertainty over the ILO’s already fragile financial position and raise questions about potential staffing or budgetary adjustments if funding gaps are not closed.
The United States historically occupies the deputy role at the ILO as the organization’s largest donor, contributing roughly 22% of the ILO budget. As of May 29, the ILO’s published figures show the United States owes 257 million Swiss francs in total for 2026 and for prior arrears from 2024 and 2025. The agency converted that figure to $328 million on its website.
The ILO emphasized that its decision to delay the appointment is "without prejudice" to a resolution should the United States settle its unpaid contributions. The agency said it is engaged in discussions with U.S. authorities as it monitors the financial situation.
With the deputy post traditionally held by the largest contributing country, the suspension of the appointment highlights the operational link between member-state payments and senior leadership appointments at multilateral organizations. The ILO’s public figures on unpaid contributions underscore the scale of the funding shortfall the agency faces if arrears are not addressed.
Next steps: The ILO and U.S. officials are in discussions; the appointment remains conditional on the U.S. settling its arrears.