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Cold case: Daughter of finance manager slain in 1959 still hopes for answers

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Cold case: Daughter of finance manager slain in 1959 still hopes for answers

This is the second installment in an occasional series about cold cases investigations in Cedar Rapids and Linn County.

CEDAR RAPIDS — Dianne Martin doesn’t remember much of that October day in 1959 because she was only 7 and in bed with a headache, fever and swelling of the neck and face — a bad case of the mumps.

“I remember my dad kissing me on the forehead and saying ‘Punkin, I hope you’re going to feel better today,’” she told The Gazette during a phone interview. “He always called me Punkin. If Dad called me Dianne, I knew I was in trouble.”

Frederick “Fred” Leonard Coste holds his daughter, Dianne, in 1953. (Supplied photo)

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Her father, Frederick “Fred” Leonard Coste, 47, went to work Oct. 15, 1959, at the Family Finance Corporation in downtown Cedar Rapids. Her mother, Betty, went to the dentist for a tooth extraction. She was at home with her grandmother, Louise Coste — Fred’s mother — who lived with the family.

After leaving the dentist office, her mom had to pick up a prescription and decided to walk over to Fred’s office at 312 Second Ave. SE, which is now a parking garage.

When Betty got near the office, she saw police cars with flashing lights. Officers stopped her and wouldn’t let her go inside. She didn’t know what was going on.

“I really don’t remember much,” said Martin, now 71 and living in Alabama. “I was so sick. I’m not sure it registered at the time. My grandma fell apart when she heard about my dad. I remember my mom was upset but she was a strong woman. She had to be for my grandma.”

Fred Coste’s daughter, Dianne Martin, 71, of Alabama, stands for a portrait during a 2021 visit to a museum in Indiana. (Supplied photo)

Fred Coste’s daughter, Dianne Martin, 71, of Alabama, stands for a portrait during a 2021 visit to a museum in Indiana. (Supplied photo)

Martin never thought that kiss on her forehead would be the last from her father. And she never thought his slaying would turn into an unsolved cold case 64 years later.

“I wanted for whoever did this to be found,” Martin, becoming emotional, said. “I wanted him to burn in hell. I wanted him to suffer, and sometimes I still do.”

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Details of crime

Fred Coste was discovered by two loan applicants, Thomas McMurrin and Donald McSpadden, about 11:35 a.m. that day, on his back surrounded in blood, Cedar Rapids police Investigator Matt Denlinger said in reviewing the original cold case file.

 The Family Finance Corporation was located at 312 Second Ave. SE in downtown Cedar Rapids. Its now a parking garage. (The Gazette)

The Family Finance Corporation was located at 312 Second Ave. SE in downtown Cedar Rapids. Its now a parking garage. (The Gazette)

The two men went downstairs to the De Var Diner, which was below the office, and found a police officer, Donald Hollister, who contacted detectives, George Matias and Roy Walker. They arrived about 11:55 a.m. at the scene with an identification officer.

Denlinger, a member of the department’s Cold Case Unit, said there was evidence of a struggle in one of the cubicles where Coste was likely consulting with a client. The office made small loans and kept cash on hand.

“The table had been pushed back against the wall with a chair behind it,” Denlinger said. “There was a manila folder that Fred was looking at with a customer’s name on it — he was clearly a person of interest. The detective’s notes indicated there was “probably an argument over an application for a loan that Fred had turned down.”

Police found the body of Fred Coste, 47, fatally stabbed Oct. 15, 1959, inside the cubicle area of the Family Finance Corporation, which was in downtown Cedar Rapids. More than 64 years later, the killing remains unsolved. (Photo by Cedar Rapids Police Department)

Police found the body of Fred Coste, 47, fatally stabbed Oct. 15, 1959, inside the cubicle area of the Family Finance Corporation, which was in downtown Cedar Rapids. More than 64 years later, the killing remains unsolved. (Photo by Cedar Rapids Police Department)

Coste was stabbed in the chest six times with a “heavy object,” Denlinger said. One of those stab wounds punctured his heart, according to the coroner.

The detectives also found “partial bloody hand prints” on a drawer behind the counter and it was determined that $258 was missing from the cash drawer.

The person of interest’s file showed he had taken out a loan for $151.58 on Sept. 25, 1959, and there were what appeared to be blood droplets on the account sheet.

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The loan file of “person of interest” was collected as evidence in the cold case murder of Fred Coste, 47, on Oct. 15, 1959. (Photo by Cedar Rapids Police Department)

The loan file of “person of interest” was collected as evidence in the cold case murder of Fred Coste, 47, on Oct. 15, 1959. (Photo by Cedar Rapids Police Department)

Who was Fred Coste

Denlinger said he is in “awe” of how thorough the detectives were and how quickly they collected evidence and created a “victimology” — a deep background report — on Coste.

When investigating a case, Denlinger said detectives want to look at the victim’s background to see if the crime happened because of the circumstances surrounding the victim. But there was nothing in Coste’s life or background that would lead detectives to an obvious killer.

Coste grew up in Little Falls, N.J., and served in the U.S. Army from 1943 to 1946, which included World War II. Before serving, he sold Pontiac cars for a short time, then worked for National Life Insurance and then for a loan company in Atlanta, according to the case file.

Fred Coste served in the U.S. Army in 1943-46 and U.S. Air Force in 1950. He was a staff sergeant. Coste was fatally stabbed Oct. 15, 1959, while working as the manager at Family Finance Corporation in Cedar Rapids. The murder case remains unsolved. (Photo submitted by Dianne Martin)

Fred Coste served in the U.S. Army in 1943-46 and U.S. Air Force in 1950. He was a staff sergeant. Coste was fatally stabbed Oct. 15, 1959, while working as the manager at Family Finance Corporation in Cedar Rapids. The murder case remains unsolved. (Photo submitted by Dianne Martin)

No problems in the military. No disgruntled ex-girlfriends, investigators determine.

He started working for the Family Finance Corporation in 1949, then was called back to the military — this time for a stint in U.S. Air Force in 1950. He then returned to Family Finance in Charlotte, N.C., as a manager.

Coste had been robbed in the past, Denlinger noted. When he transferred to Baltimore, Md., a man in 1953 robbed that office at gunpoint. The suspect was captured within minutes and identified by Coste. He was sentenced to 20 years in prison.

Fred Coste sits at his desk in the Family Finance Corporation office in Baltimore, Md., before being transferred to the Cedar Rapids office in 1958. Coste was fatally stabbed during what police believe was a robbery Oct. 15, 1959. The case remains unsolved. (Photo submitted by Dianne Martin)

Fred Coste sits at his desk in the Family Finance Corporation office in Baltimore, Md., before being transferred to the Cedar Rapids office in 1958. Coste was fatally stabbed during what police believe was a robbery Oct. 15, 1959. The case remains unsolved. (Photo submitted by Dianne Martin)

Coste was transferred to manage the Cedar Rapids office in 1958 and had been here only about 14 months before the fatal assault, Denlinger said.

A former secretary, who worked at the office the month before the slaying, spoke “highly” of Coste. But when the killing happened in October, he didn’t have a secretary in the office.

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Coste would occasionally stop by a tavern, usually “Sammy’s” on First Street, for a beer and then go home, Denlinger said. There were no reports that he was a gambler or had any work issues. His wife would stop by the office in the afternoons to help.

The two men who found his body, McSpadden and McMurrin, agreed to take a polygraph — lie detector — test, which seemed to be a typical police tool back then to rule out suspects but “rarely” used today, Denlinger said. McSpadden and McMurrin passed and weren’t considered suspects.

A timeline was quickly established, Denlinger said. At 11:15 a.m., a Mrs. Charles Kenke reported she talked to Coste on the phone and his body was found at 11:35 a.m. — which left about a 20-minute window for the fatal attack.

Possible suspect

The customer whose file was found on the floor near Coste’s body was called by police within an hour of the homicide. He lived in the Cedar Hills neighborhood.

The “Cedar Hills man” — as Denlinger dubs him — denied being at the finance office. But when officers showed up at this house, he admitted to stopping by to inquire about a loan. He said this happened about 11 a.m., and he was told to bring back his wife to co-sign for the loan, which the detectives doubted was true. He also denied knowing anything about a homicide there.

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The detectives couldn’t verify his timeline and obtained a search warrant for his home and vehicle. In the house, they found a handkerchief with what appeared to be blood stains. In the car, a bone-handled knife with blood stains was recovered.

Cedar Rapids police collected a handkerchief with what appeared to be blood stains from a possible suspect in the unsolved fatal stabbing of Fred Coste, 47, on Oct. 15, 1959. (Photo submitted by Cedar Rapids Police Department)

Cedar Rapids police collected a handkerchief with what appeared to be blood stains from a possible suspect in the unsolved fatal stabbing of Fred Coste, 47, on Oct. 15, 1959. (Photo submitted by Cedar Rapids Police Department)

T.C. McDermott, the identification officer, flew with the items for testing to the FBI lab outside Washington, D.C., within 24 hours of the homicide. The testing was completed within five hours, which is unheard today, Denlinger said. It usually takes weeks or months with backlogs at the state crime lab.

However, the test showed the blood on the knife wasn’t human. It was from “some sort of rodent.” No link was made between the potential suspect and the evidence.

Police collected a bone-handled knife collected by police from a possible suspect in the unsolved murder case of Fred Coste, 47, who was killed Oct. 15, 1959, while working at the Family Finance Corporation in Cedar Rapids. However, tests on blood found on the knife shows it was not human blood. (Photo submitted by Cedar Rapids Police Department)

Police collected a bone-handled knife collected by police from a possible suspect in the unsolved murder case of Fred Coste, 47, who was killed Oct. 15, 1959, while working at the Family Finance Corporation in Cedar Rapids. However, tests on blood found on the knife shows it was not human blood. (Photo submitted by Cedar Rapids Police Department)

The Cedar Hills man took a polygraph but the results must have been questionable. Denlinger found notes from a follow-up discussion with a University of Iowa professor about administering “truth serum.” That had apparently been used by other agencies at one time, but the professor said it was unreliable and it wasn’t done.

The possible suspect was released due to lack of evidence.

Denlinger said there were many notes on canvasses downtown and follow-up interviews, but no real leads. Detectives even had checked out any possible suspects who were traveling with the Clyde Bros. Circus out of Oklahoma that had been performing on May’s Island the day before, Oct. 14, 1959.

An interview with another former office secretary, Pat Thompson, gave the detectives another possibility for a murder weapon. She recalled that there had been a different letter opener than the one found in the office, and it was bigger and made of copper or dark in color.

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Denlinger said it was unclear in the notes if investigators thought it might be the “heavy object” used to stab Coste, or if that letter opener had just been replaced by a new one. The larger letter opener was never found.

Evidence photo shows the inside of Family Finance, where Fred Coste, 47, was killed Oct. 15,1959, in Cedar Rapids. Police said money was taken from the cash drawers and blood stains were found on the counter and drawers. Coste’s murder remains unsolved. (Photo submitted by Cedar Rapids Police Department)

Evidence photo shows the inside of Family Finance, where Fred Coste, 47, was killed Oct. 15,1959, in Cedar Rapids. Police said money was taken from the cash drawers and blood stains were found on the counter and drawers. Coste’s murder remains unsolved. (Photo submitted by Cedar Rapids Police Department)

Daughter’s memories

Martin, a retired social worker, said her mother was so upset in the days following her dad’s death that they left for Chicago and stayed with a relative. She recalls spending a “beautiful” day on the lake with a cousin before going to Atlanta, where her mother’s parents lived.

That’s where they buried her father. Her mom didn’t want to go back to Cedar Rapids. It was too painful. They lived in Atlanta for a few years.

She remembered the military funeral for her dad, who was a staff sergeant during his service. She recalled hearing Taps and the flag was presented to her mother, which Martin received after her mother died.

Martin doesn’t recall much from her short time in Cedar Rapids. She remembers their house was at the top of a hill down the street from Quaker Oats. She remembers not liking the “awful cold” winters.

“My dad would call my mom and tell her to ‘put another sweater on Punkin, it’s 2 degrees out,’” Martin said.

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She remembers her dad as “soft-spoken, mild mannered, very tall and handsome.” He never talked about his time in the war, her mom told her. She knew he was an airplane mechanic in the service, serving in France and Germany and later stationed in Georgia.

She has memories of helping her dad wash the car, which she loved, and playing at the playground and her dad pulling her down the slides.

Her dad loved their puppy, Puddles, a shepherd/collie mix. She learned how to walk holding the dog’s tail. Puddles died after getting bitten by a snake. She said her dad was “devastated.”

Dianne Martin with their family dog, Puddles, in Baltimore, Md., before moving with her parents, Fred and Betty Coste, to Iowa. Fred Coste was killed Oct. 15, 1979 while working the Family Finance Corporation in downtown Cedar Rapids. (Photo submitted by Dianne Martin)

Dianne Martin with their family dog, Puddles, in Baltimore, Md., before moving with her parents, Fred and Betty Coste, to Iowa. Fred Coste was killed Oct. 15, 1979 while working the Family Finance Corporation in downtown Cedar Rapids. (Photo submitted by Dianne Martin)

Coste would go out and collect on loans on the weekends and he would take his wife and daughter along.

“I remember going to the Amana Colonies for lunch and going to the diner downstairs from the office,” Martin said. “The popular song ‘Volare’ (a hit in 1958) was my favorite song and Dad knew the diner owner and he would rig up the jukebox to play it when we came in.”

Her mom always told her what a good man he was and her how much he loved his daughter.

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“’The sun rose and set on you,’” her mom would say.

Martin said she has thought over the years how different her life would be if her dad hadn’t been killed. “But I might not have my three fabulous children and three grandchildren. I don’t know.”

As Martin got older, she had such empathy for her mother because “Dad was the love of her life” and it was heartache to lose him in such a brutal way. Her mom suddenly was a single mom with a young child to support.

She worked different jobs over the years, including an optical retail store and in the medical records office of a hospital. Her mom never remarried. One time, she had a boyfriend when Martin was a senior in high school and thought about getting married.

“I asked her if she loved him and she said, ‘I loved your dad,’” Martin said. She didn’t get married.”

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Coste met his future wife when he was selling insurance door-to-door in Atlanta. After he left, Betty told her mom she was going to marry that man.

Fred and Betty Coste in August of 1956. Fred Coste was killed Oct. 15, 1959 while working as the manager of the Family Finance Corporation in Cedar Rapids. (Supplied photo)

Fred and Betty Coste in August of 1956. Fred Coste was killed Oct. 15, 1959 while working as the manager of the Family Finance Corporation in Cedar Rapids. (Supplied photo)

They dated for less than a year and got married in 1939, Martin said. He wanted to buy her a diamond but she didn’t want one. Betty wasn’t a “ring person.” Instead, she settled on a rose gold watch and wore it for many years.

Martin said she remained close to her mother even after leaving Ohio, where her mother stayed. Betty Coste died in 1982 from cancer.

“She was an amazing, strong woman,” Martin said. “She had to be mom and dad for me.”

Recent work on cold case

Denlinger said that in 2007, there was big push in the department to look at Cedar Rapids cold cases. Specimen and hair samples from Coste had been collected for future testing, and now-retired Investigator Doug Larison sent those in for further testing. But nothing significant was discovered.

Larison followed up on the “Cedar Hills man” and learned he was living out West. In 2013, retired Capt. Jeff Mellgren, who worked as a volunteer for the Cold Case Unit, traveled to his home for an interview. The man was 83 years old at the time.

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His story had changed some from 1959. He said he was given “truth serum,” which didn’t happen, according to the case file. Mellgren was hoping for a confession but didn’t get one.

Denlinger said it was difficult to decipher from the case notes if this man was lying or maybe, based on his age, having memory problems.

Last year, the unit took another look at this case and realized investigators didn’t have a good DNA profile from the victim to use for comparison in further forensic testing, Denlinger said. The specimen samples collected from Coste in 1959 were tested in 2007 but were “too degraded to yield any results.”

Denlinger set out to find Coste’s daughter to collect DNA from her, but unfortunately all the reports listed her only as “7-year-old daughter.” He searched for an obituary of Coste but only found a burial location on Gravefinder.com.

He called the cemetery in Atlanta. An employee there found a note in Coste’s file from 1982 about a woman, Dianne Martin of Columbus, Ohio, who said she was his daughter and wanted to sell the plot next to his.

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Next, he called the Columbus Police Department’s Cold Case Unit for help, and officers there found out Martin had moved to Alabama.

Denlinger eventually found her phone number and coordinated with Alabama police to take a DNA sample from her. Those were sent to him, and he provided them to the state crime lab in Ankeny. Martin’s sample is being used for comparison to the profile developed from the blood evidence found on the floor at Family Finance in 1959.

Denlinger said he didn’t know if the testing would show anything. At this point, he is trying to get answers for Martin. He’s fairly sure he has identified the killer, but is doubtful it will lead to an arrest. All the officers from the case are dead and there’s no living witnesses to testify at a trial. And the suspect, if still alive, may never confess.

This case is much different from 18-year-old Michelle Martinko, who was killed in 1979 and went unsolved for 39 years until 2018. Denlinger had DNA evidence of the killer, Jerry Burns, and the witnesses needed for trial were still alive.

Martin said she needs closure, in whatever form that happens. If she finds out the killer is dead, it might give her that.

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“I still have hope,” Martin said. “I hope Matt will find something that will blow it wide-open.”

Comments: (319) 398-8318; trish.mehaffey@thegazette.com

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Finance

Morgan Stanley sees writing on wall for Citi before major change

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Morgan Stanley sees writing on wall for Citi before major change

Banks have had a stellar first quarter. The major U.S. banks raked in nearly $50 billion in profits in the first three months of the year, The Guardian reported.

That was largely due to Wall Street bank traders, who profited from a volatile stock exchange, Reuters showed.

But even without the extra bump from stock trading, banks are doing well when it comes to interest, the same Reuters article found. And some banks could stand to benefit even more from this one potential rule change.

Morgan Stanley thinks it could have a major impact on Citi in particular.

Upcoming changes for banks

To understand why Morgan Stanley thinks things are going to change at Citi, you need to understand some recent bank rule changes.

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Banks make money by lending out money, which usually comes from depositors. But people need access to their money and the right to withdraw whenever they want.

So, banks keep a percentage of all money deposited to make sure they can cover what the average person needs.

But what happens if there is a major demand for withdrawals, as we saw during the financial crisis of 2008?

That’s where capital requirements come in. After the financial crisis, major banks like Citi were required by law to hold a higher percentage of money in order to avoid major bank failures.

For years, banks had to put aside billions of dollars. Money that couldn’t be lent out or even returned to shareholders.

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Now, that’s all about to change.

Morgan Stanley thinks Citigroup could see an uptick in profit. Getty Images

Capital change requirements for major banks

Banks that are considered globally systemically important banking organizations (G-SIBs) have a higher capital buffer than community banks as they usually engage in banking activity that is far more complicated than your average market loan.

The list depends on the size of the bank and its underlying activity, according to the Federal Reserve.

Current global systemically important banks

A proposal from U.S. federal banking regulators could drastically reduce the amount that these large banks have to hold in reserve.

Changes would result in the largest U.S. banks holding an average 4.8% less. While that might seem like a small percentage number, for banks of this size, it equates to billions of dollars, according to a Federal Reserve memo.

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The proposed changes were a long time coming, Robert Sarama, a financial services leader at PwC, told TheStreet.

“It’s a bit of a recognition that perhaps the pendulum swung a little too far in the higher capital requirement following the financial crisis, making it harder for banks to participate in some markets,” he said.

Citi’s upcoming relief  

Citi is a G-SIB and as such, is subject to the capital requirement rules. And the fact that it could get 4.8% of its money back to spend elsewhere is why Morgan Stanley is so optimistic about the bank.

In a research note, Morgan Stanley analysts said they expect Citi’s annualized net income to be better than expected due to the upcoming capital relief.

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While Citi stated its return on average tangible common equity (ROTCE), a type of financial measure, to be close to 13% by 2028, “the fact that Citi’s near-term and medium-term targets excluding capital relief were only marginally below our expectations including capital relief actually suggest upside to our numbers if Citi can deliver,” the note said.

More bank news

In fact, Citigroup’s own projections are likely conservative and it’s likely to show improvement each year, the analysts expanded.

“We have high conviction that the proposed capital rules will be finalized later this year and expect Citi can eventually revise the medium-term targets higher, suggesting further upside to consensus,” the Morgan Stanley analysts wrote.

Related: Citi just added an AI agent to your wealth management team

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This story was originally published by TheStreet on May 11, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

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Couple forced to live in caravan buy first home as ‘stars align’ in off-market sale

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Couple forced to live in caravan buy first home as ‘stars align’ in off-market sale
Natasha, 34, and Luke, 45, settled on their new home last month. (Source: Supplied)

Natasha Luscri and Luke Miller consider themselves among the lucky ones. The couple recently bought their first home in the northwest suburbs of Melbourne.

It wasn’t something they necessarily expected to be able to do, but some good fortune with an investment in silver bullion and making use of government schemes meant “the stars aligned” to get into the market. Luke used the federal government’s super saver scheme to help build a deposit, and the couple then jumped on the 5 per cent deposit scheme, which they say made all the difference.

“We only started looking because of the government deposit scheme. Basically, we didn’t really think it was possible that we could buy something,” Natasha told Yahoo Finance.

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Last month they settled on their two bedroom unit, which the pair were able to purchase in an off-market sale – something that is becoming increasingly common in the market at the moment.

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Rather perfectly, they got it for about $20-30,000 below market rate, Natasha estimated, which meant they were under the $600,000 limit to avoid paying stamp duty under Victoria’s suite of support measures for first home buyers.

“They wanted to sell it quickly. They had no other offers. So we got it for less than what it would have gone for if it had been on market,” Natasha said.

“We didn’t have a lot of cash sitting in an account … I think we just got lucky and made some smart investment decisions which helped.”

It’s a far cry from when the couple couldn’t find a home due to the rental crisis when they were previously living in Adelaide and had to turn to sub-standard options.

“We’ve managed to go from living in a caravan because we were living in Adelaide and we couldn’t find a rental with our dogs … So we’ve gone from living in a caravan, being kind of tertiary homeless essentially because we couldn’t get a rental, to now having been able to purchase our first home,” Natasha explained.

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Rate rises beginning to bite for new homeowners

Natasha, 34, and Luke, 45, are among more than 300,000 Australians who have used the 5 per cent deposit scheme to get into the housing market with a much smaller than usual deposit, according to data from Housing Australia at the end of March. However that’s dating back to 2020 when the program first launched, before it was rebranded and significantly expanded in October last year to scrap income or placement caps, along with allowing for higher property price caps.

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WHO says its finances are stable, but uncertainties loom – Geneva Solutions

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WHO says its finances are stable, but uncertainties loom – Geneva Solutions

A year after the US exit from the global health body, WHO officials say finances are secure, for now. But amid donor cuts, rising inflation, and future economic uncertainties, will funding be sufficient to meet its needs?

Earlier this month, senior officials at the World Health Organization (WHO) told journalists in a newly refurbished pressroom at the agency’s headquarters that its finances were “stable”. Following a year that saw its biggest donor withdraw as a member, forcing it to cut 25 per cent of its staff, its financial chief said that 85 per cent of its 2026 and 2027 budget had been financed.

“While we are looking at resource mobilisation, we’re also looking at tightening our belts,” Raul Thomas, assistant director general for business operations and compliance, explained, admitting that the WHO “will have great difficulty mobilising the last 15 per cent”.

Sitting at the centre of the press podium, surrounded by his deputies, Tedros Adhanom Ghebreyesus, WHO director general, backed up Thomas’s outlook. “We are stable now and moving forward”, since the retreat of the United States from the health body, he said. The Ethiopian noted that the WHO’s financial reform, allowing for incremental increases in state member fees, has been a big plus.

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Mandatory contributions have historically accounted for only a quarter of the organisation’s total funding. States have agreed to raise their contributions by 20 per cent twice, in 2023 and in 2025. Further increments are scheduled to be negotiated in 2027, 2029 and 2031 to bring mandatory funding up to par with voluntary donations that the agency relies on. The WHO also reduced its biennial budget for 2026 and 2027 from $5.3 billion to $4.2bn.

“Our financing actually is better,” Tedros emphasised. “Without the reform, it would have been a problem.”

Read more: Nations agree to raise their WHO fees in wake of US retreat

Nonetheless, the director general, now in his final year at the UN agency, warned that member states should not assume that the financial road ahead will be clear. “The future of WHO will also be defined by how successful we are in terms of the assessed contribution increases or the financial reform in general.”

As west retreats, others step in

Suerie Moon, co-director of the Global Health Centre at the Geneva Graduate Institute, explains that every year at the WHO, there’s “a non-stop effort” to ensure funding. She says a continued reliance on non-flexible, voluntary funding earmarked for specific projects, as well as donors withholding contributions – sometimes for political leverage – complicates the organisation’s financial plans. Meanwhile, ongoing cuts and predictions of a global economic downturn stemming from the war in the Middle East may further aggravate the situation, as costs rise and member states focus on national spending needs.

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Soaring prices driven by the conflict and supply chain disruptions have already affected the WHO’s procurement of emergency health kits for crises, officials at the global health body said. “We are continuing to negotiate at least from a procurement standpoint on how we can bring down a little bit the prices or reduce the increases, but we are seeing it across the board,” said Thomas.

Altaf Musani, WHO director of health emergencies, meanwhile, said aid cuts have already deprived roughly 53 million people in crisis situations of access to healthcare.

Last month, Thomas told the Association of Accredited Correspondents at the UN at the end of April that the agency is looking at non-traditional, or non-western, donors for funding to close the biennial 15 per cent funding gap. “It’s not that we won’t go to the traditional donors, but we’re expanding that donor base.”

Since the dramatic drop in funding from the US, formerly the WHO’s biggest contributor, Moon highlights that there hadn’t been a “sudden jump by non-traditional states to compensate for the US”. Last May, at the World Health Assembly, China pledged $500 million in voluntary funding until 2030, a sharp rise from the $2.5m it contributed over 2024 and 2025.

The WHO did not respond to questions from Geneva Solutions about how much of the pledged amount had been disbursed. China’s mission in Geneva did not respond to questions raised about the funding.

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Other countries, particularly Gulf states, have meanwhile been increasing their voluntary contributions to the organisation in recent years. Similarly to “western liberal democracies have in the past”, Moon explains that they may be seeking “to raise their profile and prioritise health as one of the issues that they would like to be known for”. She noted that the shift in the UN agency’s list of top donors may affect how it manages the money.

‘Sustainable’ spending

Amid these financial uncertainties, WHO executives say the organisation is also reviewing its expenditure through “sustainability plans”. This includes working more closely with collaborating centres, including universities and research institutes that support WHO programmes and are independently funded. On influenza, for example, the WHO works with dozens of national centres around the world, including the Centers for Disease Control and Prevention in the US,

When asked about any plans for further job cuts, Thomas denied that these were part of the WHO’s current strategies, but could not rule them out entirely as a future possibility. Instead, he said, the organisation was “looking at ways to use funding that may have been for activities to cover salaries in the most important areas”.

Meanwhile, WHO data shows that the number of consultants employed by the agency by the end of 2025 decreased by 23 per cent, slightly less than the staff reductions. Global heath reporter Elaine Fletcher explained to Geneva Solutions that consultants continue to represent a significant proportion of the agency’s workforce, at 5,844 – including an overwhelming number hired in Africa and Southeast Asia – compared with regular staff numbering 8,569 in December.

Upcoming donor politics

The upcoming change in leadership will also be a strategic moment for the organisation to boost its coffers.  Moon says the race for the top job at the organisation may attract funding from candidates’ home countries, which could be seen as a strategic opportunity. 

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Given the relatively small size of the WHO budget, compared to some government or agency accounts, “you don’t have to be the richest country in the world to dangle a few 100 million dollars, which could go a long way in their budget,” the expert notes.

The biggest ongoing challenge, however, will be whether major donors will announce further aid cuts. In the medium and longer term, “countries will have to  agree on the step up every two years, and there’s always drama around that.”

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