UN Faces Imminent Financial Collapse Amid Record Unpaid Dues

Sean Donlon

Staff Writer

United Nations Secretary-General António Guterres has issued a warning that the organization faces imminent financial collapse unless member states pay their outstanding dues or reform its outdated financial mechanisms.

In a letter sent to all 193 member states in late January, Guterres described the crisis as deepening and threatening essential program delivery, with cash reserves potentially exhausted by July. Al Jazeera reports that he stressed the UN cannot implement its approved budgets without receiving the funds nor refund unspent allocations it never collected, labeling the situation a vicious cycle that risks the “integrity of the entire system.”

The UN closed 2025 with a record $1.57 billion in outstanding dues for its regular budget, more than double the previous year’s arrears, Reuters explains. This severe shortfall has depleted liquidity reserves, making it impossible to fully execute the $3.45 billion regular budget for 2026, which the General Assembly approved in December following intense negotiations and representing a roughly 7 percent reduction from 2025 levels, according to the Associated Press.

A central issue is a longstanding rule mandating the annual crediting back of unspent dues to member states, regardless of actual payments received. Guterres termed this mechanism “Kafkaesque,” as it compels the return of funds that do not exist. For instance, the UN refunded $227 million in early 2026 despite lacking those contributions,  notes.

The United States, giving an estimated 22 percent of the core regular budget, remains the largest debtor, owing approximately $2.19 billion to the regular budget – including $827 million in 2025 arrears and $767 million for 2026 – plus an additional $2.4 billion for current and past peacekeeping operations, ABC News and Reuters report. Under President Donald Trump’s administration, the U.S. withheld all 2025 regular budget payments, significantly reduced voluntary contributions to various agencies, and withdrew from 31 UN bodies deemed inefficient or wasteful.  highlights that the administration pledged only $2 billion for humanitarian programs in December 2025, a sharp drop from $17 billion in 2022, while pushing for fundamental reforms and accountability.

China, the second-largest contributor at 20 percent, has fulfilled its obligations, but Guterres avoided directly naming specific delinquents in his appeal. Other debtors include Venezuela, owing $38 million and consequently losing General Assembly voting rights, per the Associated Press. As of early February, only about 36 member states had fully paid their 2026 contributions, Al Jazeera states.

The potential consequences are dire and wide-ranging. Without inflows, the UN’s New York headquarters could close by August, forcing cancellation of the annual General Assembly in September, The New York Times warns. Humanitarian operations are already impacted: The World Food Programme has reduced rations for millions of Sudanese refugees amid ongoing conflict, and the United Nations Population Fund has shuttered maternal health clinics in Afghanistan, where mortality rates remain critically high,  says. The UN human rights office now operates in “survival mode,” severely curtailing its ability to investigate and document violations, which could impede future prosecutions for war crimes and atrocities, Al Jazeera adds.

Peacekeeping missions, vital to the UN’s mandate, face heightened risks of delays, equipment shortages, and reduced deployments in volatile areas such as the Democratic Republic of Congo and Mali due to the U.S. not paying their debt,  reports. 

Guterres has called for immediate action, urging states to honor their Charter obligations or revise problematic rules to halt a “race to bankruptcy.” He has initiated the UN80 reform task force to aggressively cut administrative costs and improve efficiency, Reuters explains. This crisis differs markedly from prior shortfalls, stemming from systemic non-compliance by major contributors rather than temporary delays.

Recent developments offer some hope with U.S. envoy Mike Waltz indicating plans for an initial significant payment toward the owed billions in the coming weeks, though specifics remain pending,  reports. Meanwhile, critics view Trump’s proposed “Board of Peace”- requiring $1 billion fees for permanent membership in a new global forum – as an effort to circumvent and weaken the UN, Al Jazeera notes. Advocacy organizations like Human Rights Watch urge governments to safeguard the UN’s role, warning that its collapse would severely undermine international cooperation on climate change, pandemics, conflict prevention, and humanitarian aid.

Additional pressures come from other donors, including the UK and Germany, which have trimmed foreign aid budgets amid domestic economic strains, further constraining UN resources,  highlights.

Founded in 1945 to maintain international peace and security, promote human rights, foster sustainable development, and coordinate humanitarian efforts among its 193 member states, the United Nations now confronts one of its most severe funding challenges amid growing geopolitical tensions and skepticism toward multilateral institutions.

Image courtesy of Getty Images.