The United Nations is facing a looming financial emergency that could jeopardize its global operations, Secretary-General Antonio Guterres has warned.
In a letter to ambassadors dated January 28, he described a worsening funding crisis driven by unpaid member contributions and outdated budget practices that require returning unspent money. Guterres cautioned that without urgent action, the organisation may struggle to meet its obligations later this year.
“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote.
The warning comes as the U.N.’s funding structure shows increasing strain. The United States, which provides 22 percent of the core budget, has reduced voluntary payments to agencies and delayed mandatory contributions to the regular and peacekeeping budgets.
China follows closely, contributing 20 percent, while other member states also have unpaid dues, which by the end of 2025 totaled a record $1.57 billion.
President Donald Trump has described the U.N. as having “great potential” but believes it is not fully delivering, and his creation of a Board of Peace has raised concerns that it may challenge the traditional U.N. system.
Founded in 1945, the United Nations unites 193 nations to advance peace, human rights, development, and humanitarian efforts. In his letter, Guterres noted that some countries have formally indicated they will not honour contributions critical to funding the regular budget, though he did not identify them.
“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 said.
The Secretary-General has been pursuing reforms through a task force called UN80, aiming to reduce costs and boost efficiency. As part of this plan, the 2026 budget was cut by roughly 7 percent to $3.45 billion.
Despite these steps, Guterres warned that the U.N. could exhaust its funds by July if payment delays continue.
He also criticized a long-standing rule that forces the organisation to return unspent contributions to member states, calling it outdated and unworkable. “In other words, we are trapped in a Kafkaesque cycle expected to give back cash that does not exist,” he said, referencing the writer Franz Kafka and his depiction of bureaucratic absurdities.
