NEW YORK (Realist English). UN Secretary-General Antonio Guterres has warned that the United Nations is at risk of “imminent financial collapse” as unpaid member state contributions reach unprecedented levels and long-standing budget rules strain the organisation’s finances.
In a letter sent this week to all UN member states, reviewed by Al Jazeera, Guterres described the situation as a “grave financial crisis” and called on governments either to settle their annual dues in full and on time or agree to a fundamental overhaul of the UN’s financial framework.
“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 of our Organization,” Guterres wrote.
While the letter did not name individual countries, the warning comes as Donald Trump has moved to cut US funding for multilateral institutions and announced plans to withdraw from several UN agencies. His administration has also promoted a separate initiative known as the “Board of Peace,” which some analysts say is intended to sideline the UN.
Louis Charbonneau, UN director at Human Rights Watch, criticised the initiative, warning it resembled a “pay-to-play” global club and arguing that governments should instead work together to protect the UN and the international system underpinning human rights and humanitarian law.
Under current rules, UN member states’ annual contributions are calculated based on gross domestic product, debt levels and other factors. The United States accounts for 22 percent of the core budget, followed by China with 20 percent. By the end of 2025, outstanding unpaid dues had reached a record $1.57 billion, Guterres said.
In early January, the UN approved a $3.45 billion budget for 2026, a 7 percent reduction from the previous year, as part of efforts to contain costs. Despite this, Guterres warned that the organisation could run out of cash by July if the funding shortfall persists.
He also pointed to an outdated financial rule requiring the UN to return hundreds of millions of dollars in unspent funds to member states each year. “We are trapped in a Kafkaesque cycle expected to give back cash that does not exist,” Guterres said.
As of Thursday, only 36 of the UN’s 193 member states had fully paid their regular contributions for 2026, according to UN data.