The United Nations has warned it could run out of money by July after member states failed to pay mandatory contributions, prompting Secretary-General António Guterres to say the organisation faces an imminent risk of financial collapse.
Warning Issued To Member States
In a letter sent to all 193 member states, United Nations Secretary-General António Guterres said the organisation’s financial crisis was deepening and threatening the delivery of approved programmes. He said either governments must pay their assessed contributions in full and on time, or the UN’s financial rules must be fundamentally changed.
Guterres said money could be exhausted as early as July and described the current situation as different from past crises. He said decisions by some countries not to honour assessed contributions to the regular budget had now been formally announced, without naming specific states.
Unpaid Fees And Structural Constraints
Guterres said that in 2025, only 77% of assessed contributions had been paid, leaving a record amount outstanding. He added that the integrity of the system depended on compliance with obligations set out in the UN Charter.
A key factor worsening the situation is a financial rule requiring the UN to return unspent funds to member states when approved programmes cannot be implemented. Guterres said this had created a double impact, leaving the organisation expected to refund money it never received.
As part of the 2026 assessment process, the UN was compelled this month to return $227m (£165m) in funds that had not been collected, according to the letter.
Cash Shortages Visible At Headquarters
At the UN’s Geneva headquarters, signs warning staff of the financial crisis have been posted across buildings. Measures to save money include regularly shutting down escalators and lowering heating levels.
The UN General Assembly approved a partial change to the organisation’s financial system in late 2025, but this has not prevented a severe cash shortfall.
Role Of The United States
The crisis follows decisions by United States, the UN’s largest contributor, to withhold funding. In 2025, the US did not pay its contribution to the UN’s regular budget and provided only 30% of its expected funding for peacekeeping operations.
US President Donald Trump has criticised the UN, saying it failed to fulfil its potential and did not sufficiently support US-led peace efforts. In January, the US withdrew from dozens of international organisations, including 31 UN agencies, stating the aim was to end taxpayer funding for entities it said advanced globalist agendas.
In late December, the US pledged $2bn (£1.5bn) to UN humanitarian programmes, a sharp reduction from the $17bn it contributed in 2022. The funding came with a warning that the UN must “adapt or die.”
Broader Impact Of Aid Reductions
Other countries have also announced cuts to foreign aid. The UK and Germany have both said they will reduce spending, which the UN expects will affect its operations.
Guterres has repeatedly warned of worsening financial instability. In October, he said the organisation faced a race to bankruptcy, and earlier this year he described its position as the most fragile in years.
Withdrawal From Agencies And Legal Disputes
Last week, the US officially left the World Health Organization. WHO lawyers say the US remains legally obligated to pay its 2024 and 2025 dues, which it has refused to do.
Trump has also been accused by critics of attempting to replace some UN functions with a proposed Board of Peace focused on Gaza. He has said the board’s work would happen alongside the UN, though he previously said it might take the organisation’s place.
Programme Cuts Across The UN System
The financial crisis has already led to cuts across UN agencies. The UN human rights office has warned that it will no longer be able to document some serious violations due to a lack of funds, limiting the ability to gather evidence used in war crimes and crimes against humanity prosecutions.
In Afghanistan, UN Women has closed mother and baby clinics in a country with one of the world’s highest maternal mortality rates.
The World Food Programme has reduced rations for refugees fleeing the conflict in Sudan as funding shortages continue.
Featured image credits: Pexels
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