United Nations (UN) Secretary General Antonio Guterres has warned member states the organization risks imminent financial collapse due to unpaid fees and budget rules forcing the global body to return unspent money. A letter dated January 28 and seen by Reuters on Friday delivered his starkest warning yet about the worsening liquidity crisis.
The crisis deepens as the UN’s main contributor, the United States, retreats from multilateralism across numerous fronts. “The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote to ambassadors. His message comes as President Donald Trump slashes voluntary funding to UN agencies while refusing mandatory payments to regular and peacekeeping budgets.
Guterres indicated that formal announcements about withholding assessed contributions have been made, though he did not identify specific states. Under UN rules, contributions depend on each member state’s economic size. The US accounts for 22 percent of the core budget, followed by China with 20 percent. By the end of 2025, outstanding dues reached a record 1.57 billion dollars, Guterres said without naming the nations owing them.
UN officials state the US currently owes 2.19 billion dollars to the regular UN budget, another 1.88 billion dollars for active peacekeeping missions, and 528 million dollars for past peacekeeping operations. The State Department did not immediately respond to requests for comment on the letter. Trump has described the UN as having great potential but said it fails to fulfill that promise, launching a Board of Peace that some fear could undermine the older international body.
“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,” Guterres stated. He launched a reform task force last year called UN80, which seeks to cut costs and improve efficiency. States agreed to cut the 2026 budget by around 7 percent to 3.45 billion dollars, yet Guterres warned the organization could run out of cash by July.
One problem involves a rule now considered antiquated whereby the global body must credit back hundreds of millions of dollars in unspent dues to states each year. “In other words, we are trapped in a Kafkaesque cycle, expected to give back cash that does not exist,” Guterres said, referencing author Franz Kafka who wrote about oppressive bureaucratic processes. The UN spokesperson emphasized that when it comes to paying, it’s now or never.
Founded in 1945, the UN has 193 member states and works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid. The organization faces chronic budget problems because some member states don’t pay mandatory contributions in full while others fail to pay on time, forcing hiring freezes and cutbacks.
