On the Brink: The Roots of the UN’s ‘Financial Collapse’ Warning

Antonio Guterres has raised serious concerns about the financial health of the United Nations, warning of an "imminent financial collapse" due to unpaid fees and a budget rule that requires the U. N. to return unspent funds.

U. N. Secretary-General Antonio Guterres has raised serious concerns about the financial health of the United Nations, warning of an “imminent financial collapse” due to unpaid fees and a budget rule that requires the U. N. to return unspent funds. His warning highlights a worsening liquidity crisis, particularly as the United States, the main contributor, is backing away from multilateral agreements.

In a recent letter, Guterres revealed that there is a record $1.57 billion in outstanding dues for the U. N.’s regular budget. Over 95% of these unpaid fees are owed by the United States, which is due to pay $2.19 billion by February, along with an additional $2.4 billion for peacekeeping missions and $43.6 million for U. N. tribunals. The U. N. General Assembly has approved a budget of $3.45 billion for 2026, which covers the costs of U. N. operations worldwide, including the headquarters in New York. U. N. officials state that the U. S. did not make any payments towards the regular budget last year and still owes $827 million for 2025, plus $767 million for 2026. Venezuela and Mexico are also in debt, with amounts of $38 million and $20 million, respectively.

Guterres has urged member states to fulfill their financial obligations, stating that the cash-flow issue could be resolved if they paid what was owed. This financial strain occurs while U. S. President Donald Trump has introduced measures that many believe could weaken the U. N., such as creating a Board of Peace under his leadership. Under Trump’s administration, the U. S. has not only withheld mandatory payments to the U. N. but has also significantly cut voluntary funding to various U. N. agencies and attempted to withdraw from organizations like the World Health Organization. In light of reduced donor funding, the U. N. has appealed for a 2026 aid budget that is half of what it sought for 2025, despite rising humanitarian needs.

In an effort to reduce costs and improve efficiency, Guterres initiated a reform task force called UN80. The approved regular budget for 2026 is about $200 million higher than what Guterres originally proposed but still lower than the 2025 budget. He cautioned that the U. N. could exhaust its funds by July and criticized a requirement that forces the organization to credit back unspent dues to member states, relating it to a “race to bankruptcy. “

Trump has positioned himself as a potential solution to the U. N.’s financial issues but has not committed to paying the debts. His administration, however, has accused the U. N. of wasteful spending and misuse of funds. A senior State Department official stated that the U. N. must become more efficient and reduce unnecessary spending on salaries and conferences. The official pointed out that the U. N. has seen an uptick in high-level bureaucrats, highlighting concerns over budget management. Guterres aims to implement reforms while minimizing the impact of budget cuts, emphasizing that the U. N. cannot borrow money or print its own.

with information from Reuters

Newsroom
Newsroom
A collaboration of the Modern Diplomacy reporting, editing, and production staff.