United Nations Secretary-General Antonio Guterres has issued a stark warning to member states, saying the organisation could run out of money as early as July unless countries urgently pay what they owe.
In a letter sent on Friday, Guterres said the UN is facing a deepening financial crisis driven by unpaid and late mandatory contributions, forcing the organisation into hiring freezes and budget cuts that threaten its ability to function.
Funding Shortfalls Push UN Toward Crisis
Guterres said the UN’s financial troubles are chronic, with some countries failing to pay their full contributions and others missing deadlines. As a result, the organisation is struggling to maintain basic operations.
“Either all member states honour their obligations to pay in full and on time — or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he wrote.
The situation has worsened as the Trump administration has reduced funding to several UN agencies and delayed or rejected some required payments. President Donald Trump has repeatedly questioned the UN’s relevance and criticised its priorities, further straining relations.
At the same time, political tensions between the United States, Russia and China — all permanent members of the UN Security Council — have left the body increasingly paralysed.
Unpaid Dues and a ‘Kafkaesque’ Dilemma
By the end of 2025, unpaid contributions totalled around $1.6 billion, more than double the amount recorded a year earlier, even though more than 150 countries had paid their dues.
“The current trajectory is untenable,” Guterres wrote. “It leaves the organisation exposed to structural financial risk.”
Adding to the problem, the UN is required to reimburse member states for unspent funds, even when it does not have the cash on hand. Guterres described the situation as absurd, saying the organisation is “trapped in a Kafkaesque cycle, expected to give back cash that does not exist.”
Unless collections improve dramatically, he warned, the UN may not be able to fully carry out its 2026 budget, with regular funds potentially drying up by mid-year.
Political Pressure and a Changing Global Order
Guterres’ warning comes against a backdrop of growing global divisions and shrinking international cooperation. In his final annual address this month, ahead of stepping down in 2026, he spoke of a world fractured by geopolitical rivalries and “brazen violations of international law.”
He also criticised sweeping cuts to development and humanitarian aid, widely seen as a reference to reductions imposed by Washington under Trump’s “America First” agenda.
Further complicating matters, Trump recently launched a so-called “Board of Peace,” which critics argue is designed to rival the UN and weaken its role on the global stage.
