The United Nations is confronting its most severe financial crisis in history, with Secretary-General António Guterres warning of “imminent financial collapse” unless member states immediately fulfill their financial obligations. In an urgent letter to ambassadors, Guterres revealed that the UN’s operational funds could be completely depleted by July, threatening the organization’s ability to deliver essential programs worldwide.
The crisis stems from unprecedented levels of unpaid membership fees, with outstanding contributions reaching a record 77% of total assessments by the end of 2025. Guterres emphasized that the current situation differs fundamentally from previous financial challenges, as several member states have formally announced their refusal to honor their mandatory contributions under the UN Charter.
A particularly problematic financial rule exacerbates the crisis: the UN must return unspent funds to members if budgets cannot be fully implemented. Guterres described this as a “double blow” that forces the organization to “return cash that does not exist.”
The United States, traditionally the UN’s largest contributor, has dramatically reduced its funding. The Trump administration has withdrawn from approximately 31 UN agencies, characterizing them as “wasteful” and advancing “globalist agendas over US priorities.” While the US recently pledged $2 billion for humanitarian programs, this represents a drastic reduction from its 2022 contribution of $17 billion.
President Trump has simultaneously established an alternative peacekeeping initiative—the Board of Peace—leading to speculation about potentially replacing certain UN functions. When questioned whether this board might supplant the UN, Trump responded ambiguously: “Well, it might.”
Guterres concluded with an ultimatum: either all 193 member states honor their financial commitments immediately, or they must fundamentally restructure the UN’s financial framework to prevent total collapse.