UN Chief Proposes $577 Million Budget Cut, 18% Job Reduction as Cash Crunch Worsens Amid Soaring US Arrears

United Nations Secretary-General António Guterres on Monday formally proposed slashing the UN’s core budget for next year by $577 million and cutting more than 18 percent of staff positions, as the world body confronts one of its worst financial crises in decades.

Addressing the UN General Assembly’s budget committee, Guterres said the organization is facing a mounting liquidity crunch driven largely by unpaid US dues.
“We ended 2024 with $760 million in arrears, of which $709 million is still outstanding,” he said. “We have also not received $877 million of 2025 contributions. Thus, arrears now stand at $1.586 billion.”

Guterres has proposed a $3.238 billion core budget for 2026, a 15 percent reduction from this year. The core budget covers political, humanitarian, disarmament, economic, social affairs and communications work. Most UN agencies such as UNICEF and the World Food Programme rely on voluntary contributions and are not part of the core funding.

“Liquidity remains fragile, and this challenge will persist regardless of the final budget approved by the General Assembly — given the unacceptable volume of arrears,” Guterres warned.

The United States, which pays the maximum assessment rate of 22 percent, is the UN’s largest contributor. But President Donald Trump has repeatedly criticized the organization as ineffective, arguing for significant cuts to US funding.

In March, Guterres launched a sweeping reform effort known as UN80, aimed at overhauling operations and reducing costs as the UN approaches its 80th anniversary. Peacekeeping operations, which have a separate budget, are also under strain. In October, senior officials said peacekeeping missions would cut a quarter of their personnel across nine operations due to tightening finances and uncertainty over future US support.