United Nations Secretary-General Antonio Guterres has issued a stark warning to member nations: the organisation could run out of money by July unless countries pay their dues in full and on time. Chronic budget shortfalls are already forcing hiring freezes and spending cuts.
Growing Unpaid Contributions Threaten UN Operations
Guterres said the UN is struggling because some member states fail to meet their mandatory financial obligations. By the end of 2025, unpaid contributions totaled around $1.6 billion—more than double the previous year—even though over 150 countries had paid their dues.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote. He added that without urgent improvements in collections, the UN cannot fully execute the 2026 programme budget approved in December.
Political Tensions Intensify the Crisis
The warning comes amid US funding reductions to several UN agencies, with the Trump administration delaying or rejecting some required contributions. President Trump has frequently questioned the UN’s relevance and priorities, and this month unveiled his “Board of Peace,” which critics say could rival the organisation.
Meanwhile, disputes among the United States, Russia, and China—each with veto power on the Security Council—have left the council largely paralysed, adding political strain to the UN’s financial woes.
A “Kafkaesque” Budget Dilemma
Compounding the problem, the UN must reimburse member states for unspent funds even when it lacks the cash to do so. Guterres called the situation a “Kafkaesque cycle,” warning that the organisation is being asked to return money that does not exist.
In his final annual address before stepping down at the end of 2026, Guterres decried global divisions, violations of international law, and sweeping cuts to development and humanitarian aid, likely referencing US “America First” budget reductions. He stressed that urgent action by member states is needed to prevent a full-blown financial collapse.
