The United Nations has issued one of its most dire warnings in decades, stating that it could face financial collapse in a matter of months if member nations, particularly the United States, do not pay billions of dollars in outstanding dues. The United Nations could run out of money by July, causing it to close its headquarters in New York as early as August.
This would be the first time in the 80-year history of the United Nations that it has been forced to shut down.
Headquarters Closure and Suspension of Core Functions
As per the U.N. representatives, the cash crisis would force the organization to shut down its operations at the headquarters, where the Security Council holds meetings to deal with the international crises of peace and security. The impact would be far-reaching and not merely symbolic.
The U.N. would be forced to cancel its annual General Assembly, which takes place in September, where world leaders meet to deal with global challenges. The organization would also be forced to shut down the Office for the Coordination of Humanitarian Affairs (OCHA), which is the body responsible for dealing with emergencies in conflicts, natural disasters, and humanitarian disasters.
Although some U.N. agencies have their own sources of funding, the breakdown of the central coordinating mechanism would still impact the international humanitarian system.
Guterres Issues Urgent Warning to Member States
In a letter dispatched to the ambassadors of all 196 member states of the United Nations, the Secretary-General António Guterres warned of “imminent financial collapse,” stating that the current crisis is “different in nature from previous crises.”
“The crisis is deepening, threatening program delivery and risking financial collapse,”
Guterres said, adding that the situation would worsen quickly if urgent measures are not taken. The Secretary-General also pointed out that the organization does not have the liquidity reserves that it had during previous crises.
The warning follows the General Assembly’s approval of a $3.45 billion budget for 2026, intended to support the U.N.’s three core pillars: peace and security, sustainable development, and human rights.
The United States: The Largest Debtor by Far
The United States is at the heart of the crisis, as it represents about 95 percent of the unpaid contributions, or $2.2 billion, according to senior U.N. officials. This amount includes unpaid contributions for both 2025 and 2026.
The mandatory contributions to the U.N. are based on a country’s gross domestic product, and defaulting on payments can lead to the loss of voting rights. Although Venezuela has lost its vote due to $38 million in unpaid contributions, the amount of unpaid contributions by the U.S. is much larger.
Mexico is third with $20 million in unpaid contributions for 2025, although this is expected to be paid late. The U.N. does not expect to receive any payments from Venezuela due to sanctions imposed on the country. The U.S. mission to the U.N. did not respond to requests for comments.
Structural Flaws in U.N. Financial Rules
In addition to the issue of late payments, U.N. officials have identified a structural problem that has been inherent in the financial system of the organization since 1945. According to current regulations, if the U.N. does not utilize its approved budget in full, whether due to late payments of dues or other reasons, it is required to refund the unused amount to its member states.
Guterres has identified this system as a recipe for failure and said that it puts the organization at risk of financial failure and also makes it impossible for the organization to build any reserves. He has warned the member states that they have a choice to make: change the financial rules or risk the collapse of the organization.
Trump Administration’s Retreat from Multilateralism
The situation is occurring in the wake of President Donald Trump’s fresh withdrawal from international bodies. In early January, the U.S. withdrew from dozens of international bodies, claiming that they are inefficiently run. These include several U.N. agencies, including the Population Fund.
The U.S. had previously withdrawn from UNESCO, the World Health Organization, and the U.N. Human Rights Council and had plans to cut its funding for peacekeeping missions.
In addition to its unpaid annual dues, the United States owes almost $2 billion for ongoing peacekeeping efforts, $528 million for completed missions, and over $43 million for international tribunals, including the International Court of Justice and the International Criminal Court.
U.N. officials claim that the U.S. has stated that it will contribute only $160 million towards ongoing peacekeeping efforts and nothing towards the tribunals.
Immediate Impact on Peacekeeping and Humanitarian Operations
Because of this, peacekeeping missions have already been told to reduce their budgets by 15 percent due to funding uncertainty. This is in addition to possible cuts that might affect missions in conflict-affected areas.
According to Farhan Haq, a spokesperson for the U.N., “When it comes to paying, it’s now or never.” This is because the organization does not have the same kind of financial reserves that it had during previous funding crises.
If the organization stops its activities in July, humanitarian coordination would be affected, even if UNICEF, the World Food Programme, and the U.N. Refugee Agency continued to operate.
Morale, Staffing, and the Risk of Institutional Paralysis
According to experts, the crisis has already started to affect the morale of the U.N. system. Richard Gowan of the International Crisis Group said that the layoffs and the reduction of programs have already demoralized the staff, and a complete shutdown could take the organization into uncharted territory.
One extreme measure, according to Gowan, could be to ask the staff to work for free temporarily, which is not a feasible solution for staff members working in war zones or handling sensitive mediation processes. Without salaries or payments to vendors, it would be difficult to maintain the peacekeeping missions and conflict mediation processes.
A Familiar Warning, But a More Dangerous Moment
Although Guterres has made similar warnings in the past, this time around, the warning seems more pressing. The combination of unpaid contributions, strict financial policies, and the withdrawal of a major donor from multilateralism has left the U.N. in a precarious position.
In the short term, it appears that the secretary general is trying to pressure major donors to disburse money quickly. However, the larger crisis raises fundamental questions about the sustainability of the financial model of the U.N. and whether member states are committed to the organization in the face of escalating global conflict and humanitarian crises.
If the world body actually runs out of money this summer, the implications will be far-reaching and go well beyond New York, undermining one of the few remaining platforms for global action.