What's happened
As of February 2026, the United Nations faces imminent financial collapse due to unpaid dues, primarily from the United States, which owes over $2.19 billion for the regular budget and $1.8 billion for peacekeeping. Secretary-General Antonio Guterres warns cash could run out by July, threatening key operations. The US plans a significant payment soon amid ongoing tensions and reforms.
What's behind the headline?
Financial Crisis Rooted in US Arrears
The UN's financial crisis is overwhelmingly driven by the United States' failure to pay its assessed dues, accounting for 95% of outstanding payments. This reflects a broader US policy shift under President Trump, emphasizing national sovereignty over multilateral commitments and withdrawing from key UN bodies.
Structural Flaws Exacerbate the Problem
UN financial rules require returning unspent funds to member states even if dues remain unpaid, creating a "Kafkaesque" cycle that deepens liquidity issues. Secretary-General Guterres' call for reform highlights the urgent need to modernize these outdated mechanisms.
Geopolitical Undercurrents
The US's creation of the "Board of Peace" initiative, perceived as a rival to the UN, and its ideological campaigns within UN forums reveal a strategic effort to reshape global governance. This undermines the UN's authority and complicates collective action on global challenges.
Consequences and Forecast
If dues remain unpaid, the UN risks shutting down critical operations, including its New York headquarters and humanitarian coordination offices, by mid-2026. This will impair global responses to crises and weaken international cooperation.
Impact on Global Governance
The financial strain and political tensions threaten the UN's role as a multilateral platform. Without swift payments and reforms, the UN's capacity to address climate change, conflict, and human rights will diminish, affecting global stability.
What This Means for Readers
While the average person may not directly influence UN funding, the consequences of a weakened UN will ripple globally, affecting peacekeeping, humanitarian aid, and international law enforcement. Awareness of these dynamics is crucial as they shape the geopolitical landscape.
What the papers say
The New York Times reports that Secretary-General Guterres warned the UN could run out of cash by July, risking shutdowns of key operations including the General Assembly and humanitarian offices. Guterres described the situation as "imminent financial collapse" and criticized the UN's financial rules requiring repayment of unspent funds despite unpaid dues (Farnaz Fassihi, New York Times).
Reuters highlights that the US owes $2.19 billion to the UN's regular budget and $1.8 billion for peacekeeping, with the Trump administration planning a "significant down payment" soon. The US's withdrawal from UN agencies and funding cuts underpin the crisis, while Guterres has launched the UN80 reform plan to improve efficiency (Emma Farge, Reuters).
Al Jazeera emphasizes the political dimension, noting the US and Israel's frequent criticism of the UN and the Trump administration's ideological campaign to reshape UN agendas. The creation of the "Board of Peace" by Trump is seen as a rival to the UN, with concerns about its membership and purpose (Al Jazeera Staff).
France 24 and AP News confirm the US's arrears and the UN's urgent calls for payment or financial rule overhaul. They note Venezuela's secondary arrears and loss of voting rights, illustrating broader challenges in member compliance (France 24, AP News).
Together, these sources paint a picture of a UN at a financial and political crossroads, with the US's non-payment central to the crisis and reform efforts underway but uncertain.
How we got here
The UN depends on member states' mandatory dues for its $3.45 billion 2026 budget. The US, historically the largest contributor, has withheld payments since 2025 amid President Trump's administration's withdrawal from UN agencies and funding cuts. This has led to a record $1.57 billion in unpaid dues, straining UN liquidity and operations.
Go deeper
- Why is the US withholding payments to the UN?
- What reforms is the UN proposing to fix its financial rules?
- How will the UN's financial crisis affect global peacekeeping and humanitarian efforts?
Common question
-
What Did Lula and Trump Discuss About UN Reform and Gaza?
Recent diplomatic talks between Brazil's Lula and former US President Trump have sparked interest worldwide. Their discussions touched on critical issues like UN reform, the situation in Gaza, and rising tensions over Venezuela. Understanding what was said and the implications for international relations can help clarify the current geopolitical landscape. Below, we explore the key questions surrounding these talks and their broader impact.
-
What Are the Biggest News Stories Today?
Stay updated with the top headlines making waves around the world today. From major crime incidents and international tensions to legal rulings and online safety concerns, these stories are shaping the news cycle. Curious about how these events connect or impact global stability? Keep reading for clear, concise answers to your most pressing questions.
-
Will the UN Run Out of Money Soon?
The United Nations is facing a serious financial crisis, with unpaid dues threatening its ability to operate effectively. Many wonder if the UN's funding problems will lead to a shutdown or major reforms. Below, we explore the key questions about the UN's financial future and what it means for global stability.
-
Why is the UN facing a financial crisis now?
The United Nations is warning it could run out of funds by July due to unpaid dues, mainly from the US. This financial crunch raises questions about the stability of global diplomacy and the future of UN operations. Why is the UN struggling financially now, and what are the implications for international cooperation? Below, we explore the key reasons behind this crisis and what might happen if it isn't resolved soon.
-
Why Is the UN Facing a Financial Crisis Now?
The United Nations is currently experiencing a serious financial crisis, mainly due to unpaid dues from key member states like the United States. This situation threatens to disrupt vital peacekeeping missions and humanitarian efforts worldwide. Curious about what caused this crisis, what it means for global peace, and whether the US will pay its dues soon? Read on to find clear answers to these pressing questions.
More on these topics
-
The United Nations is an intergovernmental organization that aims to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonizing the actions of nations.
-
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many small islands and islets in the Caribbean Sea.
-
Nicolás Maduro Moros is a Venezuelan politician serving as president of Venezuela since 2013. His presidency has been disputed by Juan Guaidó since January 2019, although Maduro is the real president.
-
Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
-
António Manuel de Oliveira Guterres GCC GCL is a Portuguese politician and diplomat who is serving as the ninth Secretary-General of the United Nations. Previously, he was the United Nations High Commissioner for Refugees between 2005 and 2015.