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By Peter Aitken and Gabe Whisnant
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United Nations Secretary-General António Guterres warned Friday that the world body faces “imminent financial collapse” by mid-year unless its financial rules are reworked or all 193 member states pay their assessed dues in full and on time.
Newsweek reached out to the White House by email on Friday afternoon for comment.
Why It Matters
President Donald Trump has heavily focused on the nation's financial health since returning to office, moving with cold efficiency to cut spending, especially where he deems to find alleged waste, fraud, and abuse: This manifested most clearly in the debate around the U.N. Relief and Works Agency (UNRWA), an aid agency that has supported Palestinian refugees since 1949, but one which Trump claimed had "funneled" money to Hamas.
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Trump ultimately ordered the U.S. to withdraw from dozens of organizations that he and his administration deemed wasteful for American taxpayers or ideologically driven, many of which were run by the U.N.
Simultaneously, Trump has taken NATO members to task for failing to meet their financial obligations, stressing that maintaining those payments was necessary to keep the U.S. involved in the organization.
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What To Know
The stark message, conveyed in a letter to member governments, comes as the U.N.’s cash reserves dwindle and outstanding payments have reached record levels. Guterres did not single out any country by name, but the warning comes amid significant arrears from the United States, traditionally the largest contributor.
"The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future," Guterres wrote in a letter to ambassadors dated January 28, according to Reuters.
The organization is facing a shortfall of around $1.57 billion after 2025, largely from outstanding dues. U.N. officials say the U.S. currently owes $2.19 billion to the regular U.N. budget, another $1.88 billion for active peace-keeping missions, and $528 million for past peace-keeping missions.
Without urgent action to shore up finances or change budgetary rules, he said, the U.N. may not be able to sustain operations as budgeted through July and beyond. Guterres launched a reform task force last year to determine what cuts can be made and whether the organization can improve spending efficiency.
“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," Guterres added.
Trump Pursues Board of Peace
The issue has arisen at the same time that Trump has looked to establish his Board of Peace, which will oversee the development and revitalization of the Gaza Strip, with members comprised of regional partners as well as U.S. allies. Trump has said that membership will rotate, but that members can buy a permanent seat with a $1 billion contribution to the board's fund.
Some critics and leaders have expressed concern that Trump is attempting to build an alternative or rival to the U.N., which he has long criticized.
The proposal raises questions about international governance structures and how diplomatic influence could be shaped by financial contributions. Many rights experts and advocates have previously said that Trump overseeing a board to supervise a foreign territory's governance resembled a colonial structure.
Update 1/30/26, 6:10 p.m. ET: This article has been updated with additional information.
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