United Nations chief Antonio Guterres on Friday warned that the world body is on the brink of financial collapse and could run out of cash by July, as he urged countries to pay their dues.
The UN faces chronic budget problems because some member states do not pay their mandatory contributions in full, while others do not pay on time, forcing it into hiring freezes and cutbacks.
‘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,’ secretary-general Guterres wrote in a letter.
The organisation’s top decision-making body, the Security Council, is paralysed because of tensions between the United States and Russia and China, all three of which are permanent, veto-wielding members.
Although more than 150 member states have paid their dues, the UN ended 2025 with $1.6 billion in unpaid contributions—more than double the amount for 2024.
Guterres said the ‘integrity of the entire system’ depended on states adhering to their obligation under the UN charter to pay their ‘assessed contributions’ - adding that 77 per cent of the total owed had been paid in 2025, leaving a record amount unpaid.
The letter reads: ‘Just this month, as part of the 2026 assessment, we were compelled to return $227m – funds we have not collected.’
The US is the UN’s largest contributor, but president Donald Trump has said it was not fulfilling its ‘great potential’ and has criticised it for failing to support US-led peace efforts.
The US did not pay its contribution to the UN’s regular budget in 2025 and offered only 30 per cent of its expected funding to UN peacekeeping operations.
Trump also launched his ‘Board of Peace’ this month, which critics say is intended to become a rival to the UN.
In January, Trump withdrew it from dozens of international organisations, including 31 UN agencies. In late December, the US pledged $2bn in funding for UN humanitarian programmes - warning the international organisation must ‘adapt or die’ - a fraction of the $17bn it spent in 2022.
Other countries, such as the UK and Germany, have also announced significant reductions in foreign aid, which will inevitably impact the UN’s work.
The annual dues UN member states must pay are set according to each country’s gross domestic product, debt and other factors.
The US accounts for 22 per cent of the core budget, followed by China with 20 per cent.
In early January, the UN approved a $3.45bn budget for 2026 – down 7 per cent from last year, as the global body looked to reduce costs amid its financial challenges.
As of Thursday, only 36 of the 193 UN member states had fully paid their regular 2026 contributions, the UN says on its website.
