United Nations Faces “Imminent Financial Collapse” Amid Funding Crisis

The Secretary-General has cautioned that the United Nations faces an “imminent financial collapse” as a result of member states failing to pay their dues. According to António Guterres, the UN’s financial situation is “deepening, threatening program delivery,” and funds may run out by July.

In a letter to all 193 member states, Guterres stated that to prevent the organization from collapsing, members must either make their required payments or fundamentally overhaul its financial regulations. This warning follows a move by the United States—the UN’s largest donor—to withdraw from several agencies it deemed a “waste of taxpayer dollars.” The U.S. has also refused to contribute its full share to the organization’s regular and peacekeeping budgets, while a number of other members are either refusing to pay or have fallen into significant arrears.

Despite a partial financial system adjustment approved by the UN General Assembly in late 2025, the organization still faces a severe cash crisis. The situation is exacerbated by a regulation requiring the UN to “return” unspent funds to member states—even if those funds were never actually received. Evidence of the crisis is visible at the UN’s Geneva offices, where signs alert staff to the issue, escalators are frequently shut off, and heating is turned down in a desperate bid to save money.

In his letter, Guterres stated that while the UN has experienced financial difficulties before, the current circumstances are “categorically different.” He noted that “decisions not to honor assessed contributions that finance a significant share of the approved regular budget have now been formally announced,” though he did not name specific member states. He emphasized that governments must fulfill their commitment under the UN Charter to pay their “assessed contributions” to maintain the integrity of the entire system, noting that only 77% of the total sum owed was paid in 2025, leaving a record amount outstanding.

According to Guterres, the UN is currently “expected to give back cash that does not exist.” He explained that the organization is unable to carry out budgets using uncollected monies, yet it is still legally bound to return millions in “unspent” credit. “Just this month, as part of the 2026 assessment, we were compelled to return $227 million—funds we have not collected,” Guterres wrote. “The bottom line is clear: either all member states honor their obligations to pay in full and on time, or member states must fundamentally overhaul our financial rules.”

While United Nations agencies rarely receive the full funding requested for humanitarian crises, the last 12 months have been especially challenging. President Donald Trump has criticized the organization for failing to support U.S.-led peace initiatives, claiming it has not lived up to its “great potential.” In 2025, the U.S. provided only 30% of its anticipated funds for UN peacekeeping efforts and failed to pay its share of the regular budget. In January 2026, the U.S. withdrew from 31 UN agencies to “end American taxpayer funding of entities that advance globalist agendas over U.S. priorities.”

The United States pledged $2 billion for United Nations humanitarian programs in late December—a small fraction of the $17 billion it spent in 2022—while warning the organization to “adapt or die.” Other nations, including the UK and Germany, have also announced significant cuts to foreign aid, further impacting operations.

Critics have also accused President Trump of attempting to use his “Board of Peace” to oversee regeneration efforts in Gaza, potentially replacing certain UN functions. While the U.S. President stated that the board’s work would be carried out “in conjunction with the United Nations,” when asked by a Fox TV interviewer if the board would eventually replace the UN, he remarked, “Well, it might.”