The United Nations has been forced to cut spending, halt recruitment, and scale back services due to a deepening cash crisis that threatens its ability to carry out essential global operations.
During a General Assembly budget committee session on Monday, UN officials and member states expressed serious concern over the organization’s financial stability. Member states currently owe the UN $2.4 billion in regular budget contributions and an additional $2.7 billion for peacekeeping efforts.
The UN’s Fifth Committee met to address the growing shortfall, as officials warned that chronic underfunding is eroding the credibility of the organization and its ability to fulfill mandates.
“Each delay in payment, each hiring freeze, each cancelled service chips away at trust in our ability to deliver,” said Switzerland’s representative, speaking on behalf of both Switzerland and Liechtenstein.
To help mitigate the crisis, one proposed measure would allow the UN to retain unspent funds at the end of the year, rather than returning them to member states as current rules require. Because many contributions arrive late, the UN often lacks sufficient time to use the funds before they must be returned.
This change could provide a financial buffer during low-cash periods, particularly in early months like January when incoming payments typically lag. Another proposal under consideration is the use of “special commitments”—emergency” financial tools — to bridge early-year funding gaps.
Still, many countries emphasized that these temporary solutions do not address the core issue: persistent late or non-payment of dues.
Norway, along with the UK and Kazakhstan, stressed that stopgap measures won’t resolve the underlying problem. “What’s needed is a bold commitment to financial reform,” Norway’s delegate said.
The European Union also underscored the seriousness of the situation, warning that the crisis poses real operational risks. “This is not an abstract problem,” they stated. “The burden must not fall solely on those who pay on time.”
Singapore, representing ASEAN, noted that the liquidity crisis has become a regular issue. It cited a stark example: the UN Economic and Social Commission for Asia and the Pacific (ESCAP) had to shut its offices for three months and suspend travel and hiring due to lack of funds.
Adding to the tension, one country — widely known but not named during the meeting — is reportedly responsible for more than half of all outstanding contributions. That country is believed to be the United States, which, under the administration of Donald Trump, has withheld funds from the UN over political disagreements.
Russia, meanwhile, called for greater transparency in how the UN manages cost-saving measures, cautioning against unilateral decisions made without broader consultation.
UN Under-Secretary-General for Management Catherine Pollard reported some recent improvements, noting that a small number of countries had paid in full since May 9. As of May 19, 61 countries had met all of their financial obligations for 2025.
But that’s far from enough. The overall message from Monday’s session was clear: Without prompt and widespread financial support from its members, the UN’s ability to respond to global crises — from peacekeeping to humanitarian relief — is at serious risk.
