UN chief warns of financial collapse risk over unpaid US contributions
Photo: UN (Getty Images)
The United Nations is facing the risk of a serious financial crisis, with its regular budget potentially running out as early as mid-year. The main source of the instability is cited as unpaid membership contributions from the United States, according to Bloomberg.
António Guterres, Secretary-General of the United Nations, has warned that the organization is facing an "imminent financial collapse" and could run out of regular-budget funds as early as July.
In a letter to UN member states dated 28 January, Guterres said that if current trends continue, the UN will be unable to meet its expenditures within the next six months.
US role in crisis
A key source of the problem is the failure of the United States to pay its mandatory contributions. The US traditionally covers about 22% of the UN’s regular budget, but payments were halted after the start of the second presidential term of Donald Trump.
According to the UN, at the outset of the crisis, the United States owed around $1.4 billion in arrears from previous years, in addition to $767 million due for the current year.
In 2025, the White House has not transferred any funds from the mandatory $826 million contribution.
Selective funding and consequences
Instead of paying its assessed contributions, the US administration has focused on financing individual initiatives, including a pledge of $2 billion for humanitarian needs in December.
At the same time, Trump has publicly criticized the UN and promoted alternative structures, including a so-called "Peace Board" he established.
Cost-cutting and internal reforms
Since 2024, the UN has been attempting to offset the deficit through internal optimisation measures. Guterres has launched reforms, cut administrative spending, and reduced the overall budget by 7% compared with last year.
Among other measures, the organization stopped purchasing paper towels for restrooms at its headquarters in New York City, saving about $100,000.
However, the structural deficit is too large to be covered by internal reforms alone, especially given the requirement to return unused funds to member states.
Earlier, Ukraine’s Ministry of Foreign Affairs of Ukraine reacted ironically to an appeal by Russia to the UN, in which Moscow referred to the so-called "self-determination" of the temporarily occupied Donbas by drawing parallels with Greenland, calling such comparisons absurd and legally groundless.
Guterres has also rejected attempts by Russia to justify the occupation of Crimea and parts of Donbas by invoking the principle of self-determination, stressing that such arguments have no legal basis.
