The UN chief has told member states that the organization is at risk of "imminent financial collapse," citing unpaid fees and a budget rule that forces the global body to return unspent money, a letter seen by Reuters on Friday showed.
UN Secretary-General Antonio Guterres has repeatedly spoken about the organization's worsening liquidity crisis, but this is his starkest warning yet, and it comes as its main contributor, the United States, is retreating from multilateralism on numerous fronts.
"The crisis is deepening, threatening program 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.
The US has slashed voluntary funding to UN agencies and refused to make mandatory payments to its regular and peacekeeping budgets.
US President Donald Trump has described the UN as having "great potential" but said it is not fulfilling that, and he has launched a Board of Peace, which some fear could undermine the older international body.
Founded in 1945, the UN has 193 member states and works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid.
In his letter, Guterres said, "Decisions not to honor assessed contributions that finance a significant share of the approved regular budget have now been formally announced."
He did not say which state or states he was referring to, and a UN spokesperson was not immediately available for comment.
'Kafkaesque cycle'
Under UN rules, contributions depend on each member state's economy size. The US accounts for 22% of the core budget, followed by China with 20%.
But by the end of 2025, there was a record $1.57 billion in outstanding dues, Guterres said, without naming them.
“Either all Member States honor their obligations to pay in full and on time – or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse," he said.
Guterres launched a reform task force last year, known as UN80, which seeks to cut costs and improve efficiency. To that end, states agreed to cut the 2026 budget by around 7% to $3.45 billion.
Still, Guterres warned in the letter that the organization could run out of cash by July.
One of the problems is a rule now seen as antiquated under which the global body must credit hundreds of millions of dollars in unspent dues to states each year.
"In other words, we are trapped in a Kafkaesque cycle expected to give back cash that does not exist," said Guterres, referring to author Franz Kafka, who wrote about oppressive bureaucratic processes.
US to withhold UN funding over Palestine membership
The United States announced on January 15 that it will hold back 10% of its funding to the United Nations and UN agencies unless they “take credible steps to combat anti-Israel bias.”
In the near-500-page 2026 funding package, the US has allocated 10% of funding to UN bodies, unless the Secretary of State certifies that the UN is taking concrete steps to address specific issues. If this is not certified, the 10% will stay frozen.
The document requires proof of the appropriate use of travel funds and the existence of a publicly available website, among other criteria.
Back on December 23, the Permanent Mission of Israel to the UN revealed that the United Nations spends roughly $100 million per year on reports, debates, special mechanisms, and communication activities dedicated almost exclusively to singling out Israel.
“Today we actually showed that these are orchestrated campaigns, well-funded and well-established within the UN budget,” Israeli Ambassador to the UN Danny Danon said. “These $100 million, which will be approved in the coming days in the new UN budget, are spent on activities against the government of Israel and against the IDF."
Amichai Stein and Mathilda Heller contributed to this report.