The United Nations is facing a serious financial crunch that could leave it unable to operate by midyear, Secretary-General Antonio Guterres warned on Friday, as unpaid dues from member states continue to pile up.
Guterres said the organisation could run out of cash as early as July unless countries meet their financial obligations or agree to reform how the UN is funded.
Unpaid Dues Push UN to the Brink
At the heart of the problem are chronic delays and shortfalls in mandatory contributions. While more than 150 member states have paid what they owe, others have failed to pay in full or on time, forcing the UN to impose hiring freezes and cut back on basic operations.
“Either all member states honour their obligations to pay in full and on time, or they must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Guterres wrote in a letter to member states.
By the end of 2025, unpaid contributions had reached about $1.6 billion—more than double the amount recorded a year earlier. Guterres warned that the current situation leaves the organisation exposed to serious structural risk.
US Cuts and Global Tensions Add Pressure
The financial strain has been worsened by recent moves from the United States. Under President Donald Trump, Washington has reduced funding to several UN agencies and delayed or rejected some mandatory payments. Trump has repeatedly questioned the UN’s relevance and criticised its priorities.
At the same time, deep divisions among the UN’s most powerful members—the United States, Russia and China—have left the Security Council largely paralysed. Earlier this month, Trump announced the creation of a “Board of Peace,” a move critics say is designed to compete with the UN on the global stage.
Cash Shortages Threaten Future Programs
Beyond unpaid dues, the UN is also required to return unspent funds to member states, even when the cash is no longer available. Guterres described the situation as a “Kafkaesque cycle,” saying the organisation is being asked to return money that effectively does not exist.
“If collections do not improve dramatically, we cannot fully carry out the 2026 budget approved in December,” he warned, adding that the UN could exhaust its regular budget funds by July based on past trends.
In his final annual address this month, Guterres, who is set to step down at the end of 2026, pointed to growing geopolitical divisions, violations of international law and sweeping cuts to development and humanitarian aid—an apparent reference to reductions driven by the Trump administration’s “America First” policies.
