United Nations Secretary-General Antonio Guterres has warned member states that the UN could run out of money by July if countries fail to pay their dues. He described the organisation’s current financial situation as critical, with hiring freezes and budget cutbacks already in place.
Rising Unpaid Contributions Threaten Operations
Guterres highlighted that chronic budget shortfalls are largely caused by some countries not paying their mandatory contributions in full or on time. By the end of 2025, the UN recorded around $1.6 billion in unpaid dues—more than double the previous year—even though over 150 member states had fulfilled their obligations.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote. He warned that unless collections improve rapidly, the UN will struggle to execute its 2026 programme budget.
Political Tensions Compound the Crisis
The warning comes amid reductions in US funding to several UN agencies, with the Trump administration rejecting or delaying some mandatory contributions. President Trump has repeatedly questioned the UN’s relevance and priorities, and this month launched his “Board of Peace,” which critics say could rival the UN.
Tensions with other permanent Security Council members, including Russia and China, have further stalled decision-making, leaving the UN grappling with both political and financial challenges simultaneously.
A “Kafkaesque” Funding Dilemma
The UN is also caught in a cycle of reimbursing member states for unspent funds even when cash is unavailable. Guterres called this a “Kafkaesque cycle,” saying the organisation is expected to return money that doesn’t exist.
In his final annual address before stepping down at the end of 2026, Guterres warned of a world fractured by geopolitical divides and violations of international law. He also criticized sweeping cuts to development and humanitarian aid, likely a reference to the US “America First” budget reductions, underscoring the urgent need for member states to stabilize the UN’s finances.
