United Nations Secretary-General Antonio Guterres has issued a stark warning that the organisation could run out of money by July unless member states meet their financial obligations. The UN is facing growing budget shortfalls that have already forced hiring freezes and program cutbacks.
Unpaid Dues Threaten UN Operations
Guterres highlighted that the UN’s financial troubles are fueled by countries failing to pay mandatory contributions in full or on time. By the end of 2025, unpaid contributions reached approximately $1.6 billion—more than double the previous year—even though over 150 nations had settled their dues.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote, warning that without immediate action, the UN will struggle to implement its 2026 programme budget.
Political Tensions and US Funding Cuts
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 recently launched a “Board of Peace,” which critics say could compete with the UN.
Compounding the problem, tensions between the United States, Russia, and China—permanent Security Council members with veto power—have left the council largely paralysed, hampering decision-making at the highest levels.
A “Kafkaesque Cycle” of Financial Strain
The UN also faces the challenge of reimbursing member states for unspent funds, even when it lacks the cash to do so. Guterres described this as a “Kafkaesque cycle,” noting that the organisation is expected to return money that does not exist.
In his final annual address before stepping down at the end of 2026, Guterres highlighted a world fractured by geopolitical divides and repeated violations of international law. He also criticized sweeping cuts to development and humanitarian aid, likely pointing to reductions tied to the US “America First” agenda, emphasizing that urgent action is needed to stabilize the UN’s finances and maintain its global mission.
