The United Nations faces the gravest financial emergency in its history, with Secretary-General António Guterres warning that it could run out of cash for its regular operations by July 2026. In a stark letter to member states, Guterres described an "imminent financial collapse" driven by nations refusing to pay their mandatory dues and an antiquated rule forcing the UN to return unspent money it never actually received.
The crisis stems from a record $1.57 billion in unpaid dues at the end of 2025, more than double the previous year's arrears. While Guterres did not name specific countries, the primary contributor is the United States, which accounts for 22% of the UN's core budget. Under President Donald Trump, the U.S. has refused to make its mandatory payments to the regular and peacekeeping budgets, owing approximately $2.196 billion for this year and prior years. A spokesperson described the situation as "now or never," stating the UN lacks the cash reserves to continue functioning.
The financial shortfall is not an abstract budget issue but translates directly into a reduction of lifesaving services worldwide. Guterres noted the crisis is "threatening programme delivery," and the impacts are already being felt. Agencies are making severe cuts: the UN human rights office warns it cannot document serious violations, UN Women has closed maternal health clinics in Afghanistan, and the World Food Programme has reduced rations for refugees fleeing Sudan. At headquarters, drastic cost-saving measures like turning off escalators and lowering heating are in effect.
The funding assault coincides with a political effort to sideline the UN, particularly concerning Middle East governance. President Trump recently launched a "Board of Peace" initiative, demanding a $1 billion fee from nations for permanent membership. Critics, including Human Rights Watch, label it a "pay-to-play, global club" intended to supplant UN functions. This move directly challenges the UN's role in international law and humanitarian response, with Trump himself suggesting the new board might take the UN's place. The parallel structure threatens to divert resources and political will from established, albeit underfunded, multilateral channels.
Compounding the arrears is a "Kafkaesque" UN financial rule requiring the organization to credit back hundreds of millions in unspent dues to member states annually, even if those countries never paid in the first place. In January 2026 alone, the UN was forced to return $227 million it did not have. This rule, combined with the liquidity crunch, means the UN cannot fully execute its approved $3.45 billion budget for 2026. Guterres has issued an ultimatum: all member states must honor their payment obligations, or they must fundamentally overhaul the financial rules to prevent total collapse.