United Nations Secretary-General Antonio Guterres has issued a sharp warning that the UN could run out of funds by July unless member countries pay their dues. The organisation is already facing hiring freezes and budget cuts due to chronic shortfalls.
Unpaid Contributions Push UN to the Edge
Guterres said the UN’s financial troubles stem from some countries failing to pay mandatory contributions on time or in full. By the end of 2025, unpaid contributions had surged to around $1.6 billion—more than double the previous year—even though more than 150 nations had settled their obligations.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote, warning that without urgent action, the UN may be unable to implement its 2026 program budget.
Political Tensions Complicate Funding
The warning comes amid cuts and delays in US funding to several UN agencies. President Donald Trump has repeatedly questioned the UN’s relevance and priorities, while this month unveiling a “Board of Peace” critics say could rival the organisation.
Tensions with other permanent Security Council members, including Russia and China, have also left the council largely paralysed, making it difficult for the UN to address global crises effectively.
A “Kafkaesque Cycle” of Cash Shortages
Adding to the pressure, the UN must reimburse member states for unspent funds even when the cash isn’t available. Guterres described the situation as a “Kafkaesque cycle,” noting the organisation is expected to return money it does not have.
In his final annual address before stepping down at the end of 2026, Guterres criticized deep geopolitical divides, violations of international law, and sweeping cuts to development and humanitarian aid, likely referencing US “America First” budget reductions. He stressed that immediate action is necessary to stabilize the UN’s finances and maintain its global mission.
