The United Nations (UN) is facing an imminent financial collapse as member states continue to withhold mandatory payments, UN Secretary-General António Guterres has warned, cautioning that the organisation could run out of money by July.
In a letter addressed to all 193 UN member states, Guterres said the financial crisis is deepening and threatening programme delivery, urging countries to either pay their assessed contributions in full or agree to a fundamental overhaul of the UN’s financial rules.
“I cannot overstate the urgency of the situation we now face,” Guterres wrote. “We cannot execute budgets with uncollected funds, nor return funds we never received.”
The warning follows decisions by several countries — most notably the United States, the UN’s largest financial contributor — to withhold funding. The US has refused to pay into the UN’s regular and peacekeeping budgets, while withdrawing from multiple UN agencies it described as a waste of taxpayer money.
According to Guterres, only 77% of assessed contributions were paid in 2025, leaving a record level of unpaid dues. The situation is worsened by UN financial rules that require the organisation to refund unspent programme funds, even when the money was never received in the first place.
“Just this month, as part of the 2026 assessment, we were compelled to return $227 million — funds we have not collected,” the letter stated.
The financial strain is already visible. At the UN’s Geneva headquarters, cost-cutting measures include switched-off escalators and reduced heating, reflecting the organisation’s urgent attempt to conserve cash.
While the UN has faced funding crises before, Guterres said the current situation is “categorically different”, warning that the integrity of the entire system depends on member states meeting their obligations under the UN Charter.
The funding crisis has had real-world consequences. Several UN agencies have begun scaling back operations:
-
The UN Human Rights Office says serious violations may now go undocumented due to lack of funds.
-
UN Women has closed mother-and-baby clinics in Afghanistan, a country with one of the world’s highest maternal mortality rates.
-
The World Food Programme has cut rations for refugees fleeing the conflict in Sudan.
The crisis has also been compounded by foreign aid reductions announced by countries including the UK and Germany, further limiting available resources for humanitarian work.
Guterres had earlier warned that the UN was in a “race to bankruptcy”, as pressure mounts on the organisation to adapt amid shifting global political priorities and declining financial support.
