UN Chief Sounds Alarm Over Imminent Financial Collapse
United Nations Secretary-General Antonio Guterres issued a stark warning on Friday, declaring that the global organization stands on the brink of financial collapse. In a dramatic statement, Guterres cautioned that the world body is heading toward what he described as an "imminent financial collapse" as member states fall behind on their annual contributions and structural funding problems intensify.
Urgent Letter to Member States
According to multiple reports, Guterres recently circulated a critical letter to all 193 UN member nations, alerting them to a severe financial crunch. In this communication, he emphasized that governments must either honor their mandatory payments or fundamentally overhaul the organization's financial rules to prevent collapse.
The BBC reported that Guterres wrote in his letter: "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 specifically called on countries to clear their outstanding dues immediately.
Record Unpaid Dues and Structural Problems
Al Jazeera reported that by the end of 2025, unpaid dues had reached a staggering record of $1.57 billion, though Guterres did not identify the specific countries responsible for these arrears.
In a January 28 letter seen by Bloomberg News, Guterres highlighted a particularly problematic budget rule that requires the UN to return any unspent money to member states. This mechanism has made it exceptionally difficult for the organization to maintain liquidity. "The more we save, the more we are penalised," he wrote, describing what he called a "Kafkaesque cycle" where the UN is expected to return cash that doesn't actually exist.
US Financial Responsibility and Withdrawals
The institution has faced chronic financial strain, but the situation has worsened significantly since the beginning of President Donald Trump's second term. The BBC claimed that the United States did not pay its contribution to the UN's regular budget in 2025 and offered only 30 percent of its expected funding to UN peacekeeping operations.
Bloomberg reported that the US still owes the UN approximately $1.4 billion in arrears from previous years, in addition to a $767 million bill for the current year's budget. In 2025 specifically, the White House did not pay any of its $826 million in dues. Notably, while refusing to pay mandatory fees, the US reportedly pledged $2 billion to the organization's humanitarian arm in December.
The US accounts for 22 percent of the UN's core budget, followed by China at 20 percent. Beyond financial issues, Trump's administration announced plans to withdraw from several UN agencies and promoted what he calls a "Board of Peace" initiative.
Expert Concerns About Trump's Initiatives
Al Jazeera reported that some experts believe Trump's "Board of Peace" initiative is aimed at sidelining the United Nations. Originally meant to help administer Gaza after an Israel-Hamas truce, Trump has recast it as a substitute for a UN he claims has failed to fulfill its potential.
Louis Charbonneau, UN director at Human Rights Watch, commented on the proposal: "Trump's board appears to be a kind of pay-to-play, global club, judging from the $1 billion fee for permanent membership." He added, "Instead of handing Trump $1 billion checks, governments should work together to protect the UN and other institutions established to uphold international human rights and humanitarian law."
Budget Cuts and Current Financial Status
Guterres has been attempting to scale back spending and reverse funding issues since 2024. The UN has already cut this year's budget by 7 percent compared to the previous year. Despite these austerity measures, the UN earlier this month approved a $3.45 billion budget for 2026, reflecting another 7 percent reduction as the organization continues efforts to curb spending.
However, Guterres warned in his letter that even with these cost-cutting steps, the UN could exhaust its cash reserves by July. The financial pressure is evident in current payment statistics: as of Thursday, only 36 of the UN's 193 member countries had fully paid their regular 2026 contributions.
Under the existing system, UN membership fees are calculated based on factors including:
- National gross domestic product
- Debt levels
- Economic capacity
The United States officially left the UN's World Health Organization, having refused to pay its 2024 and 2025 dues despite WHO lawyers stating the country was legally obligated to do so. Other UN agencies are also implementing significant cuts as the financial crisis deepens.
