United Nations Secretary-General Antonio Guterres has warned that the organisation could run out of money by July if member states do not pay their dues in full and on time. In a letter sent to member countries on Friday, Guterres described the UN’s financial situation as “untenable,” citing chronic budget shortfalls caused by delayed or incomplete payments.
“The current trajectory is untenable. It leaves the organisation exposed to structural financial risk,” Guterres wrote. At the end of 2025, the UN recorded around $1.6 billion in unpaid contributions, more than double the amount from the previous year, despite over 150 member states meeting their obligations. These funding gaps have forced the UN to impose hiring freezes and make cutbacks in operations.
Guterres also highlighted a related challenge: the UN must reimburse member states for unspent funds, a practice that strains its cash flow. “We are trapped in a Kafkaesque cycle, expected to give back cash that does not exist,” he wrote. The secretary-general cautioned that without significant improvements in collections, the UN will be unable to fully execute the 2026 program budget approved last December.
The warning comes as US President Donald Trump’s administration has reduced funding to several UN agencies and delayed or rejected some mandatory contributions. Trump has frequently questioned the relevance of the UN and criticised its priorities. Relations with other major powers, including Russia and China—both permanent Security Council members with veto power—remain tense, leaving the council paralysed on key decisions.
Earlier this month, Trump launched a so-called “Board of Peace,” which critics claim is intended as a rival to the UN. Guterres’ letter underscores the urgency of the organisation’s financial situation amid these political tensions.
In his annual speech this month, Guterres condemned “self-defeating geopolitical divides” and “brazen violations of international law.” He also expressed concern over “wholesale cuts in development and humanitarian aid,” which observers link to the Trump administration’s budget reductions as part of its “America First” policies.
Guterres called on all member states to honour their obligations or to agree to a fundamental overhaul of the UN’s financial rules to prevent an imminent collapse. “Either all member states honour their obligations to pay in full and on time—or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he wrote.
The UN chief is expected to step down at the end of 2026, making this his final annual address on the organisation’s finances. With unpaid contributions climbing and major powers challenging the UN’s authority and funding, Guterres’ warning highlights the precarious position of the world body at a time when global crises demand coordinated international action.
