UN Could Run Out of Cash by July, Guterres Warns Member States

United Nations Secretary-General Antonio Guterres warned on Friday that the organization is facing a potential financial collapse and could exhaust its funds by July unless member states pay their dues in full and on time.

The UN has long struggled with budget shortfalls caused by delayed or incomplete payments from some countries, forcing the organization to impose hiring freezes and cut spending.

“Either all Member States honor their obligations to pay in full and on time, or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Guterres wrote in a letter to members.

The warning comes as the administration of US President Donald Trump has reduced funding to several UN agencies and delayed or rejected some mandatory contributions. Trump has repeatedly questioned the relevance of the UN and criticized its priorities.

The Security Council remains deadlocked by tensions among the United States, Russia and China, its three permanent veto-wielding members. Trump has also launched a “Board of Peace,” which critics say is intended to rival the UN.

Despite more than 150 countries paying their dues, the UN ended 2025 with $1.6 billion in unpaid contributions, more than double the amount recorded in 2024.

Guterres described the situation as “untenable,” warning that it leaves the organization exposed to serious financial risk.

UN officials also said the organization is required to reimburse member states for unspent funds, worsening its cash flow problems.

“We are trapped in a Kafkaesque cycle, expected to give back cash that does not exist,” Guterres wrote.

He warned that without a sharp improvement in collections, the UN would be unable to fully implement its 2026 budget, adding that available funds could be exhausted by mid-year.

Guterres, whose term ends in 2026, recently warned of deepening geopolitical divisions and condemned cuts to development and humanitarian aid, an apparent reference to reductions under Trump’s “America First” policies.