Diplomats and United Nations officials are urging the Trump administration to maintain its relationship with the UN refugee agency amid concerns that Washington could suspend funding and withdraw from its governing body.

People familiar with the discussions said the United States had considered severing ties with the UN High Commissioner for Refugees in recent weeks. A decision had been expected last week but was not announced, suggesting diplomatic pressure may have delayed or prevented the move.

The dispute reportedly followed the appointment of U.S. diplomat Teresa Rae Finerty as deputy high commissioner. UN Secretary-General António Guterres and High Commissioner Barham Salih selected Finerty instead of Simon Hankinson, a U.S.-backed candidate who has accused the agency of promoting mass migration.

The agency warned supporters that it could be placed on a U.S. blacklist, potentially ending American funding. Washington could also withdraw from the executive committee responsible for overseeing the organization.

Officials have asked governments supporting the agency to use every available diplomatic channel to persuade Washington to continue its cooperation.

The U.S. State Department said there had been no change in its relationship with the agency, adding that Washington would work with international organizations when doing so advances American foreign policy interests or helps save lives.

The United States contributed $868 million to the refugee agency in 2025, accounting for approximately one-quarter of all donor funding.

A withdrawal would deepen an existing financial crisis at the organization. Available funding fell by approximately 30 percent in 2025 compared with the previous year, forcing the agency to eliminate thousands of positions and announce further reductions.

The potential cuts come as displacement approaches record levels worldwide, driven by prolonged conflicts and humanitarian emergencies, including those in Ukraine and Sudan.