United Nations Secretary-General António Guterres has warned that the organization faces "imminent financial collapse" by mid-2026 unless member states pay their dues or overhaul financial rules. In a letter to ambassadors dated January 28, Guterres cited unpaid fees and a budget rule that forces the UN to return unspent money as major risks. The UN's largest contributor, the United States, has slashed voluntary funding and refused to pay mandatory contributions to the regular and peacekeeping budgets. Guterres stated that outstanding dues reached a record $1.568 billion by the end of 2025, with collections covering only 76.7% of assessed contributions. Without drastic improvements, the UN may not be able to fully implement its 2026 budget.
Part 1: Immediate Action & Core Facts
Guterres warned that the UN could face a liquidity crisis by July if financial rules are not overhauled or member states do not pay their dues. The US owes $2.196 billion to the UN's regular budget, plus an additional $767 million for the current year. Guterres described the situation as a "Kafkaesque cycle," where rigid budget rules force the UN to return unspent funds even when contributions were never paid.
Part 2: Deeper Dive & Context
US Contributions and Policy Shifts
The US, traditionally the largest contributor, has cut voluntary funding to multiple UN programs and declined to pay mandatory contributions. President Donald Trump has criticized the UN for not fulfilling its potential, and the US has exited several international bodies. A senior diplomatic source told Fox News that Guterres bears significant responsibility for the crisis, arguing that warning signs were visible long before the current shortfall.
UN Financial Rules and Reforms
Guterres proposed two solutions: either all member states honor their obligations to pay in full and on time, or the financial rules must be fundamentally overhauled. The UN's budget rules require the organization to return unspent money, which exacerbates the cash crisis. Major contributors have pressed for efficiency and reform for years, but meaningful action was delayed until recently.
Global Implications
The UN's financial crisis threatens its ability to deliver programs and maintain operations. The organization works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid. The US accounts for 22% of the core budget, followed by China with 20%. The crisis raises questions about the UN's sustainability and the commitment of its member states.