The United Nations is facing a "grave financial collapse" due to unpaid annual assessments from member states and a flawed existing economic framework.

UN Secretary-General António Guterres highlighted this severe crisis in a letter sent to member states earlier this week.

In the letter, Guterres urged nations to either agree to a reform of the UN's financial rules or commit to full and timely payments. He warned that without these funds, maintaining the organization's core operations will become increasingly difficult.

The situation was confirmed by UN spokesperson Farhan Haq during a press briefing on Friday (January 30). "It has come to a 'now or never' situation regarding the payment of dues," Haq stated, according to reports from Al Jazeera.

Key Factors Driving the Crisis

• US Funding Cuts: While Guterres did not single out specific nations, the crisis has been significantly exacerbated by the Trump administration's decision to slash funding for multilateral organizations.
• The "Board of Peace" Initiative: The Trump administration has announced plans to withdraw from 66 agencies—including the UN—while launching a new rival initiative titled the "Board of Peace."
• Record Arrears: As of the end of 2025, unpaid dues reached a record $1.57 billion. Under the current scale of assessments, the US is responsible for 22% of the budget, while China contributes 20%.

A Shrinking Budget and Empty Coffers
Earlier this month, the UN approved a $3.45 billion budget for 2026, which is 7% lower than the previous year. Despite this belt-tightening, Guterres cautioned that if the current trend continues, the organization could run out of cash as early as July.

According to UN records, as of Thursday (January 29), only 36 out of 193 member states have fully paid their regular budget assessments for 2026.

The mounting debt and the shift in US foreign policy represent a significant challenge to the future of international cooperation and "dollar-funded" diplomacy.