The United Nations (UN) is at risk of “imminent financial collapse,” the organisation’s Secretary-General has warned.
António Guterres said the global agency could run out of money as early as July.
It comes after the Trump Administration moved to cut funding for some UN agencies.
Here’s what to know.
Context
The UN is funded by its 193 member states. Contributions vary depending on the size of their economies.
In a letter to all 193 states this week, Guterres said the UN was facing a financial crisis due to unpaid fees by its members.
Guterres wrote that the “integrity of the entire system” depends on member states meeting their payment obligations.
Guterres has long warned of the agency’s worsening finances, but said it had now reached a crisis point.
While no country was singled out, the letter follows U.S. President Donald Trump’s decision to pull funding from several UN agencies.
A White House memo dated 7 January ordered government departments to “cease participating in and funding… 31 UN entities that operate contrary to U.S. national interests, security, economic prosperity, or sovereignty.”
Other countries, including the UK and Germany, have also recently reduced foreign aid commitments.
U.S. funding
Historically, the U.S. has been the UN’s largest funder.
Last year, it contributed roughly 22% of the UN‘s nearly $US4 billion annual budget, followed by China at 20%.
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In January 2025, Trump withdrew the U.S. from the World Health Organisation, the UN’s public health agency.
The following month, the U.S. also withdrew from the UN’s Human Rights Council.
In December, the U.S. pledged $2 billion in humanitarian funding to the UN, down from $17 billion in 2022.
At the time, White House officials warned the agency needed to “adapt or die”.
Now, the Trump administration has cut funding from dozens more UN agencies, following a review of “all international intergovernmental organisations… that the United States funds or supports.”
A report by The Associated Press estimates the U.S. owes $4.4 billion in missed payments relating to the UN’s regular budget and its various peacekeeping missions.
Repayment rule
Guterres raised concerns about a UN budgetary rule requiring it to repay unspent funds to member states, even if states never actually pay.
Here’s an example of how it works:
Country A said it would give the UN $10 million. The UN planned to spend this on health clinics, but Country A never sent the money.
However, these funds were allocated, and because they were not spent (even though that’s because the money didn’t arrive), the UN now owes Country A $10 million.
UN80 was created last year to improve efficiency. The reform agency has since cut the UN’s 2026 budget by 7% to $US3.45 billion.
“We cannot execute budgets with uncollected funds, nor return funds we never received,” Guterres said.
He warned that without drastic change, the UN would run out of money by July.
The financial crisis is “threatening programme delivery,” with some restrictions on family clinic and food ration access already in place.
