UN Secretary-General António Guterres has warned that the United Nations is facing a mounting liquidity crisis and has proposed a major reduction to its 2026 core budget. He says the organisation may need to cut $577 million and eliminate more than 18% of staff posts to remain operational.

Guterres told the UN General Assembly's budget committee that the financial strain comes as the UN approaches its 80th anniversary, describing the situation as“unprecedented.” He said unpaid contributions, particularly from the United States,

are the driving factor behind the shortfall.

According to figures presented on Monday, the UN ended 2024 with $760 million in unpaid dues, $709 million of which remains outstanding. An additional $877 million owed for 2025 has not been received, bringing unpaid contributions to about $1.586 billion.

Under the proposed plan, the core 2026 budget would be set at $3.238 billion, roughly 15% lower than the current year. Funding reductions would affect political affairs, humanitarian coordination, disarmament, economic and social programs, and communications. Agencies reliant on voluntary funding, such as UNICEF and the World Food Programme, would not fall under the cuts.

The United States, which contributes 22% of the UN's regular budget, remains the largest donor. U.S. President Donald Trump has repeatedly criticised UN spending and signaled support for reducing America's financial commitments, a stance analysts say has increased pressure on the organisation.

Diplomats and experts warn the cuts could weaken the UN's ability to respond to global crises, including the wars in Ukraine and Gaza, growing humanitarian emergencies, and rising demands on peacekeeping and development operations.

Member states are expected to begin negotiations in the coming weeks, though divisions over financial burden-sharing and institutional reform suggest the process may become contentious before any budget is approved.

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