United Nations Secretary-General Antonio Guterres has issued a stark warning to member states, saying the global body is facing a serious financial crunch that could leave it running out of cash as early as July unless urgent action is taken.
His appeal comes amid growing budget pressures, driven by unpaid dues and delayed contributions from member countries, including cuts and hold-ups under US President Donald Trump’s administration.
Unpaid Dues Put UN at Risk
Guterres said the UN’s financial troubles are not new but have reached a breaking point. Some countries are failing to pay their mandatory contributions in full, while others are paying late, forcing the organization to impose hiring freezes and spending cuts.
“Either all member states honour their obligations to pay in full and on time—or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Guterres wrote in a letter to governments.
By the end of 2025, unpaid contributions had reached about $1.6 billion, more than double the amount recorded a year earlier, despite more than 150 countries settling their dues.
US Cuts and Global Tensions Add Pressure
The situation has been made worse by reduced funding from the United States, which has scaled back support for some UN agencies and delayed or rejected certain mandatory payments. Trump has repeatedly questioned the relevance of the UN and criticized its priorities.
At the same time, rising tensions between the US, Russia and China—three permanent members of the Security Council—have left the body’s most powerful chamber largely paralysed. This month, Trump also launched a “Board of Peace,” which critics argue is meant to rival the UN’s role on the world stage.
“An Untenable Trajectory”
Guterres warned that the current path is unsustainable and exposes the UN to serious structural risks. He also highlighted what he described as a “Kafkaesque” problem: the organization is required to reimburse member states for unspent funds even when it does not have the cash on hand to do so.
“The practical reality is stark,” he wrote. “Unless collections drastically improve, we cannot fully execute the 2026 program budget approved in December.” Based on past trends, he added, the UN could run out of regular budget funds by July.
In his final annual address this month, ahead of stepping down in 2026, Guterres painted a bleak picture of a world divided by deep geopolitical rifts and repeated violations of international law. He also condemned sweeping cuts to development and humanitarian aid, an apparent reference to sharp funding reductions under the Trump administration’s “America First” policies.
