UN Warns of Impending Financial Collapse, Cash Could Run Out by Mid-July

United Nations Secretary-General António Guterres has warned that the organization is facing an “imminent financial collapse” due to unpaid annual contributions and other ongoing financial challenges.

Earlier this week, Guterres sent a letter to all UN member states, which Al Jazeera reviewed on Friday. In the letter, he cautioned that the world body is on the brink of a severe financial crisis. He urged member states either to agree to a fundamental reform of UN financial regulations or to accept the real possibility of the organization’s financial failure. He also called on countries to pay their outstanding annual contributions.

A UN spokesperson emphasized at a press conference, “Now is the time to pay contributions; otherwise, it may never happen.” Deputy UN spokesperson Farhan Haq added, “We no longer have the liquidity to maintain operations as in previous years. The Secretary-General has repeatedly issued increasingly urgent warnings on this matter.”

The financial strain comes at a time when the Trump administration has announced plans to withdraw from several UN agencies and recently launched a new initiative called the “Board of Peace.” Experts say this move is intended to pressure the UN. Although Guterres did not single out any country for blame, his warning comes amid ongoing efforts by the United States to reduce funding to multilateral institutions.

Louis Charbonneau, UN director at Human Rights Watch, criticized Trump’s initiative, calling it a “pay-to-play” global club requiring a $1 billion fee for permanent membership. He urged governments to instead work together to support the UN and other institutions that uphold international human rights, humanitarian law, and accountability.

According to the UN website, out of 193 member states, only 36 have fully paid their 2026 regular contributions as of last Thursday. UN member contributions are calculated based on each country’s GDP, debt, and other factors. The United States contributes 22% of the UN’s core budget, followed by China at 20%.

Guterres noted that at the end of 2025, unpaid contributions reached a record $1.57 billion. He warned that either all member states must commit to paying their dues in full and on time, or the UN will have to fundamentally reform its financial regulations to avoid an imminent collapse.

To cope with these financial challenges, the UN approved a $3.45 billion budget for 2026 at the beginning of January, a 7% reduction compared to last year.

Despite these measures, Guterres cautioned that the UN could run out of cash by July. One major issue is an outdated rule requiring unused contributions to be returned to member states, creating a “Kafkaesque” cycle of expecting funds the organization does not have.