Governments are cutting human rights funding and putting millions at risk of modern slavery

Decades of progress on human rights protections are under threat as governments around the world cut funding for programs addressing modern slavery, child labour, and human trafficking.

These decisions risk reversing crucial progress, leaving millions of people vulnerable to exploitation.

Governments worldwide are pulling back on commitments to human rights protections, scaling down or eliminating funding for programs that safeguard vulnerable workers.

The United States recently announced the termination of 69 international initiatives addressing child labour, forced labour, and human trafficking – removing over USD $500 million in grants.

These cuts affect labour enforcement efforts in more than 40 countries, including key regions in Latin America, Southeast Asia, and Africa.

This is part of a growing trend where governments prioritise domestic agendas over global human rights obligations.

Justifications for these cuts often cite national interest, economic concerns, or a focus on internal workforce development.

This is despite the long-standing role of international cooperation in upholding labour standards.

International programs addressing child labour and human trafficking have played an important role in improving conditions in some of the world’s most at-risk industries, from agriculture to fisheries and electronics manufacturing.

In Honduras alone, a $13 million initiative was providing education for 6,000 children and trained 500 labour inspectors. This progress is now under threat.

An estimated 3.3 million children are forced to work, making up 12 per cent of the total number of people living in forced labour.

Without strong enforcement mechanisms and international collaboration, these numbers are expected to rise. This reverses years of progress and compounds existing issues, leading to an increase in the number of people living in modern slavery globally.

Cuts to labour rights protections are part of a larger trend of governments withdrawing from international human rights commitments.

In addition to the sudden US decision, significant reductions in funding for international aid programs have been reported.

Earlier this year, major funding reductions were announced for development assistance programs in multiple countries, including cuts to agencies responsible for preventing exploitation and supporting survivors of modern slavery.

The freezing of foreign aid in some regions due to shifting government priorities further exacerbates the crisis.

The UK government announced a reduction of its aid budget from 0.5% to 0.3% of gross national income by 2027 to fund increased defence spending.

This cut, amounting to approximately £6 billion, has raised concerns about its impact on global development and humanitarian programs, including efforts to combat modern slavery and human trafficking.

Experts warn that reduced funding will limit essential programs that support survivors and strengthen protections against exploitation.

Australia has maintained its foreign aid budget in recent years, but future projections indicate potential reductions.

The Australian National University’s Development Policy Centre estimates that traditional Organisation for Economic Co-operation and Development (OECD) donors, including Australia, may cut at least 25% of their aid by 2027.

Domestic efforts to address modern slavery have also received less funding. The 2025 Federal Budget included AU $1 million for community-based modern slavery programs.

This is a reduction from 2024 where AU $2.5 million had been allocated for the government to audit its supply chains and procurement procedures for modern slavery risks.

Reductions in aid could weaken regional anti-trafficking efforts, particularly in the Pacific and Southeast Asia, where Australia plays a key role in funding labour rights protections.

The Brazilian government announced a freeze of USD $860 million in spending for 2024 to maintain its primary deficit goal.

The freeze is expected to affect social programs and labour inspections, potentially weakening efforts to combat forced labour.

Brazil has been a leader in anti-slavery initiatives, but experts warn that funding shortfalls could reverse progress. Especially in industries like agriculture and mining, where forced labour remains a significant issue.

Germany has made significant cuts to its international development budget, with a reported €2 billion reduction in 2024.

These cuts affect programs supporting human rights protections and anti-trafficking initiatives in regions such as Africa and South Asia.

Germany has played a crucial role in supporting global labour rights, and reductions in funding could hinder progress in enforcing supply chain due diligence laws aimed at preventing modern slavery.

Governments worldwide must recognise that deprioritising human rights programs has severe consequences for millions of vulnerable people.

International funding and cooperation are essential in preventing forced labour, the worst forms of child labour, and human trafficking.

Without immediate action, the world risks undoing decades of progress and allowing exploitative practices to go unchecked.

Modern slavery is closely linked to the demand for goods and services in G20 economies.

The purchasing practices of G20 governments and businesses contribute to exploitation when global supply chains extend into lower-income countries.

As some nations withdraw funding, the world’s largest economies must step up to fill these gaps and ensure the global movement to end modern slavery continues.