United Nations Secretary-General Antonio Guterres has issued a stark warning that the organisation could run out of money by July unless member states pay their dues promptly. Chronic budget shortfalls have already forced hiring freezes and program cutbacks, raising concerns about the UN’s ability to operate effectively.
Unpaid Contributions Put UN at Risk
Guterres highlighted that some countries are failing to pay mandatory contributions in full or on time, creating a growing financial strain. By the end of 2025, unpaid dues had reached roughly $1.6 billion—more than double the previous year—even though over 150 member states had fulfilled their obligations.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote, warning that without immediate action, the UN will struggle to implement its 2026 programme budget.
Political Strains Amplify Financial Pressure
The warning comes as the Trump administration has cut funding to several UN agencies and delayed or rejected some mandatory payments. President Trump has frequently questioned the UN’s relevance and priorities, and this month launched a “Board of Peace,” which critics say could rival the UN.
Tensions between the United States, Russia, and China—permanent Security Council members with veto power—have left decision-making at the council largely stalled, further complicating the organisation’s ability to respond to global crises.
A “Kafkaesque” Cycle of Reimbursements
Adding to the pressure, the UN is required to reimburse member states for unspent funds, even when cash is not available. Guterres described this situation as a “Kafkaesque cycle,” saying the organisation is expected to return money that does not exist.
In his final annual address before stepping down at the end of 2026, Guterres also condemned deep geopolitical divides and violations of international law. He criticized “wholesale cuts in development and humanitarian aid,” likely referring to US reductions under the “America First” agenda, underscoring the urgent need for member states to stabilize the UN’s finances to ensure it can continue its global mission.
