UN Warns It May Run Out of Cash by July as US Withholds Contributions
Guterres issues stark warning of financial collapse as major contributors delay mandatory payments
United Nations, Jan 31: United Nations Secretary General Antonio Guterres has warned member states that the global body faces the risk of running out of cash by July, citing mounting unpaid contributions and outdated financial rules that strain liquidity, according to a letter seen by Reuters.
Describing the situation as increasingly severe, Guterres said the organisation’s ability to function is under threat as key contributors fail to meet their assessed obligations. He cautioned that programme delivery could be disrupted and warned of a potential financial collapse if corrective steps are not taken soon.
The warning comes as the United States, the UN’s largest contributor, has reduced voluntary funding to UN agencies and withheld mandatory payments to both the regular and peacekeeping budgets. While Guterres did not name specific countries in his letter dated January 28, he noted that some governments have formally announced decisions not to honour their assessed contributions.
Under the UN’s funding structure, payments are calculated based on the economic size of each member state. The US contributes 22% of the core budget, followed by China at 20%. By the end of 2025, outstanding dues had reached a record $1.57 billion, the Secretary-General said.
UN officials estimate that Washington currently owes over $2 billion to the regular budget, along with additional arrears related to active and past peacekeeping operations. The US State Department did not immediately respond to a request for comment.
Guterres said member states now face a choice: either fulfil their financial commitments in full and on time or overhaul the organisation’s funding framework to avert collapse. He also highlighted a long-standing rule requiring the UN to return unspent funds to countries annually, calling it an illogical system that worsens cash shortages.
The Secretary General compared the situation to a “Kafkaesque cycle,” arguing that the UN is expected to refund money it does not have.
Despite recent cost cutting measures including a 7% reduction in the 2026 budget to $3.45 billion under the UN80 reform initiative Guterres warned that existing reforms alone may not be sufficient to stabilise the organisation’s finances.
Founded in 1945, the United Nations comprises 193 member states and plays a central role in peacekeeping, humanitarian assistance, and global development. Guterres said sustaining those functions now depends on urgent financial cooperation from its members.
