The United Nations could face a funding shortfall as early as July, according to Secretary-General Antonio Guterres, who warned member states that the organization is nearing a financial breaking point due to unpaid mandatory fees.
In a letter sent to all 193 UN members, Guterres said the financial crisis is worsening and now threatens the UN’s ability to carry out approved programs. He urged countries to either pay what they owe in full and on time or agree to major changes to the UN’s financial rules to prevent collapse, reports the BBC.
The warning comes as several countries remain in arrears, with the United States, the UN’s largest contributor, refusing to fund both the regular and peacekeeping budgets in 2025. The US has also withdrawn from dozens of UN agencies, citing concerns about waste and misaligned priorities.
Guterres said that while the UN has faced funding problems before, the current situation is “categorically different.” He noted that only 77 percent of assessed contributions were paid last year, leaving a record level of unpaid dues.
A key issue has a rule requiring the UN to refund unspent funds for programs that cannot be carried out, even when the money was never received in the first place. “We cannot execute budgets with uncollected funds, nor return funds we never received,” Guterres wrote. Just this month, the UN was forced to return $227 million it didn't have.
Signs of cost-cutting are already visible at UN offices, including reduced heating and escalators being shut down to save money.
The funding is already affecting operations. UN agencies have scaled back humanitarian aid, closed maternal health clinics in Afghanistan, reduced food rations for Sudanese refugees, and warned that human rights abuses may go undocumented due to lack of investigators.
Guterres concluded that without immediate action, the integrity of the UN system itself is at risk.
In a letter sent to all 193 UN members, Guterres said the financial crisis is worsening and now threatens the UN’s ability to carry out approved programs. He urged countries to either pay what they owe in full and on time or agree to major changes to the UN’s financial rules to prevent collapse, reports the BBC.
The warning comes as several countries remain in arrears, with the United States, the UN’s largest contributor, refusing to fund both the regular and peacekeeping budgets in 2025. The US has also withdrawn from dozens of UN agencies, citing concerns about waste and misaligned priorities.
Guterres said that while the UN has faced funding problems before, the current situation is “categorically different.” He noted that only 77 percent of assessed contributions were paid last year, leaving a record level of unpaid dues.
A key issue has a rule requiring the UN to refund unspent funds for programs that cannot be carried out, even when the money was never received in the first place. “We cannot execute budgets with uncollected funds, nor return funds we never received,” Guterres wrote. Just this month, the UN was forced to return $227 million it didn't have.
Signs of cost-cutting are already visible at UN offices, including reduced heating and escalators being shut down to save money.
The funding is already affecting operations. UN agencies have scaled back humanitarian aid, closed maternal health clinics in Afghanistan, reduced food rations for Sudanese refugees, and warned that human rights abuses may go undocumented due to lack of investigators.
Guterres concluded that without immediate action, the integrity of the UN system itself is at risk.
