United Nations Secretary-General Antonio Guterres has issued a dire warning that the organisation could run out of money by July unless member states pay their outstanding dues. The UN is already grappling with hiring freezes and budget cuts due to chronic funding shortfalls.
Mounting Unpaid Contributions
Guterres explained that the UN’s financial problems stem from some countries failing to pay their mandatory contributions in full or on time. By the end of 2025, unpaid dues reached roughly $1.6 billion—more than double the amount recorded the previous year—even though over 150 nations had paid their obligations.
“The current trajectory is untenable,” Guterres wrote, emphasizing that the organisation is at serious structural financial risk. Without immediate action, the UN will struggle to implement its 2026 program budget, and regular funds could be depleted by July.
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 suggest could rival the UN.
Geopolitical tensions with Russia and China, both permanent Security Council members with veto power, have also left the council largely paralysed, further complicating the UN’s ability to operate effectively.
A “Kafkaesque Cycle” of Financial Strain
The UN faces the additional challenge of reimbursing member states for unspent funds, even when cash is unavailable. Guterres described this as a “Kafkaesque cycle,” noting the organisation is expected to return money that simply does not exist.
In his final annual address before stepping down in 2026, Guterres painted a bleak picture of a world fractured by geopolitical divides and violations of international law. He also criticized sweeping cuts to development and humanitarian aid, likely referencing US “America First” budget reductions, highlighting the urgent need for member states to stabilize the UN’s finances and secure its future.
