The United Nations is facing a serious financial crisis as many member states fail to pay their mandatory contributions, Secretary-General António Guterres has warned. He described the situation as deepening, threatening the delivery of programs, and cautioned that funds could run out by July if action is not taken.
In a letter to all 193 member states, Guterres urged countries to either fulfill their payments or reform the UN’s financial rules to prevent collapse. The warning comes after the United States, the organization’s largest contributor, withheld payments to both its regular and peacekeeping budgets and withdrew from several agencies, calling them wasteful. Several other countries are also in arrears or refusing to pay.
Although the UN approved minor financial reforms in late 2025, the organization still faces a severe cash shortfall, compounded by rules that require it to return funds it never actually received. At headquarters in Geneva, measures to save money, such as turning off escalators and reducing heating, highlight the severity of the crisis.
Guterres emphasized that while the UN has faced financial difficulties before, the current situation is unprecedented due to the scale of unpaid contributions. By the end of 2025, unpaid fees reached a record 77% of the total owed, putting the integrity of the entire system at risk. A rule requiring the return of unspent funds further exacerbates the problem, forcing the UN to repay money it never had.
The secretary-general stressed the urgency of the crisis, warning that budgets cannot be executed without collected funds, nor can nonexistent funds be returned. Already, the UN has had to return millions of dollars that were never received, including $227 million in early 2026. He insisted that either all member states honor their obligations or the organization must fundamentally overhaul its financial rules.
UN agencies often struggle to secure full funding for humanitarian efforts, but the past year has been particularly difficult. The United States has criticized the UN for not supporting American-led peace initiatives, providing only 30% of expected peacekeeping funds in 2025, and withdrawing from dozens of international organizations to limit spending on programs deemed contrary to US priorities. Other major contributors, including the UK and Germany, have also reduced foreign aid, further affecting UN operations.
Guterres had previously warned that the UN is in its most fragile financial position in years, calling the situation a “race to bankruptcy.” Critics have accused former US President Donald Trump of attempting to replace some UN functions with his proposed Board of Peace to oversee reconstruction efforts in Gaza, which he claims would operate alongside the UN but might also assume certain roles.