U.N. Warns of Imminent Financial Collapse as Unpaid Dues Mount Worldwide

The United Nations has warned it could face an imminent financial collapse as unpaid contributions from member states push the organisation toward a severe liquidity crisis.

In a letter to all 193 members, Secretary General António Guterres said the situation was worsening rapidly and could leave the UN without funds by July.

The warning reflects an escalation of long-running financial strains that have intensified over the past year, as major contributors reduce or withhold payments.

Deepening Cash Crisis

Guterres said the crisis was now threatening programme delivery across the UN system, describing the current moment as fundamentally different from previous funding shortfalls.

By the end of 2025, unpaid contributions reached a record level equivalent to 77% of total assessed dues, according to his letter.

He noted that some member states have formally announced decisions not to honour their mandatory contributions, without naming specific countries.

A key pressure point is a budget rule requiring the UN to return unspent funds to member states, even when the organisation never received the money.

"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."

As part of the 2026 assessment, the UN was compelled to return $227 million in funds it had not collected, further draining cash reserves.

At UN offices in Geneva, cost-cutting measures such as reduced heating and switched-off escalators reflect the severity of the situation.

Impact and Responses

The United States, the UN’s largest contributor, has refused to pay its 2025 regular budget contribution and provided only 30% of expected peacekeeping funding.

President Donald Trump has criticised the UN’s performance and withdrawn the US from dozens of international bodies, including 31 UN agencies and the World Health Organization.

Other countries, including the United Kingdom and Germany, have announced significant foreign aid cuts, adding to financial pressure.

The consequences are already visible, with UN Women closing maternal health clinics in Afghanistan and the World Food Programme cutting rations for refugees fleeing the conflict in Sudan.

The UN human rights office has warned that lack of funds will prevent documentation of serious violations that have previously supported war crimes prosecutions.

Guterres has urged member states to act quickly, warning that budgets cannot be executed with uncollected funds and that the integrity of the entire system is at stake.