The United Nations is warning of an unprecedented financial crisis that could leave the organization unable to function by July 2026, following widespread failure by member states to pay their mandatory contributions.
In a strongly worded letter to all 193 member states, UN Secretary-General António Guterres said the financial situation was “deepening” and already threatening the delivery of critical programmes worldwide.
“I cannot overstate the urgency of the situation we now face. We cannot execute budgets with uncollected funds, nor return funds we never received,” Guterres wrote.
According to the UN chief, only 77% of assessed contributions were paid in 2025, leaving a record level of unpaid dues.
The crisis has been worsened by a financial rule requiring the UN to refund unspent programme funds, even when the money was never received.
Just this month, the organisation was forced to refund $227 million as part of the 2026 assessment process despite not having collected the funds.
Guterres warned that unless member states pay their dues in full or agree to overhaul the UN’s financial rules, the organisation faces “imminent financial collapse.”
US Withdrawal and Donor Cuts
The crisis has been exacerbated by the actions of the United States, the UN’s largest contributor.
Washington declined to pay into the UN’s regular budget in 2025 and provided only 30% of its expected funding for peacekeeping operations.
In January, President Donald Trump withdrew the US from dozens of international organizations, including 31 UN agencies, calling them a waste of taxpayer money and accusing them of advancing “globalist agendas.”
While the US pledged $2 billion for humanitarian programmes in December, this was a sharp drop from the $17 billion it spent in 2022.
Trump has also hinted at replacing some UN functions with alternative structures under US oversight.
Other major donors, including the United Kingdom and Germany, have announced cuts to foreign aid, further tightening the UN’s financial position.
Impact on UN Operations
The financial strain is already visible across the organisation. At UN offices in Geneva, cost-cutting measures include turning off escalators and reducing heating.
Several agencies have warned of severe operational consequences:
- The UN Human Rights Office says it can no longer deploy investigators to document serious violations.
- UN Women has closed mother-and-baby clinics in Afghanistan.
- The World Food Programme (WFP) has reduced food rations for refugees fleeing the war in Sudan.
Guterres has repeatedly sounded the alarm in recent months, describing the situation as a “race to bankruptcy.”
He stressed that the integrity and future of the UN system now depend on whether member states are willing to meet their obligations.
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