The United Nations is facing an unprecedented financial crisis that could push the organisation into bankruptcy by mid-year, Secretary-General António Guterres has warned, following sweeping funding cuts and payment refusals by the United States under President Donald Trump.
In a letter dated January 28 and seen by Reuters, Guterres said the UN was at risk of “imminent financial collapse” and could run out of cash as early as July if member states fail to meet their financial obligations. He blamed the crisis on unpaid assessed contributions and existing budget rules that require the UN to return unspent funds, limiting its financial flexibility.
The situation has worsened since the United States — the UN’s largest contributor — slashed voluntary funding to several UN agencies and declined to make payments to both the organisation’s regular budget and its peacekeeping operations. Earlier this month, Washington announced its withdrawal from, and cessation of funding for, 31 UN entities, including a major climate treaty framework and the UN body that promotes gender equality.
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“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote to UN ambassadors. He added that decisions by some member states not to honour assessed contributions, which make up a significant portion of the approved regular budget, had now been formally announced.
Although Guterres did not publicly name the countries involved, the warning comes amid a broader rollback of US engagement with multilateral institutions. A UN spokesperson declined immediate comment when contacted.
The secretary-general urged all member states to “honour their obligations to pay in full and on time” or, failing that, to pursue a fundamental overhaul of the UN’s financial rules to avert collapse.
President Trump has consistently argued that the US spends excessively on foreign initiatives, despite foreign aid accounting for roughly 0.2 per cent of US GDP. He has claimed many international organisations operate contrary to American national interests.
Shortly after returning to office, Trump signed an executive order withdrawing the US from the UN Human Rights Council and permanently banning funding for the UN Relief and Works Agency for the Near East (UNRWA), saying the moves would save money and allow Washington to prioritise domestic concerns. In July, his administration also shut down the US Agency for International Development (USAID), a move that, according to the Harvard School of Public Health, severely disrupted humanitarian services worldwide and contributed to hundreds of thousands of deaths.
Trump has repeatedly criticised the UN, accusing it of ignoring or worsening global problems. In a speech to the General Assembly last September, he argued that issues left unresolved by the organisation were being pushed onto his administration to fix.
Earlier this month, he unveiled a new “Board of Peace”, a US-led initiative aimed at reconstructing Gaza after the war, which has raised concerns among diplomats that it could rival or sideline the UN. Of the 60 countries invited, around 26 have joined the board, which Trump is set to chair and which reportedly requires a $1 billion (£740 million) joining fee.
As funding pressures mount, UN officials warn that without swift action by member states, the world body may soon struggle to sustain core operations, peacekeeping missions and humanitarian programmes across the globe.
