New York The United Nations is bracing for a deep financial squeeze in 2026, with Secretary-General António Guterres warning of a looming “race to bankruptcy” unless Member States pay their dues in full and on time. Presenting a revised regular budget of $3.238 billion down 15.1% from the previous year Guterres told the General Assembly’s Fifth Committee that the organization is facing “a liquidity crisis of unprecedented proportions.”
The budget includes a staffing cut of 18.8%, eliminating over 2,200 posts, primarily in administrative departments. However, programs supporting Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States will remain protected.
As of September 2025, only 136 of 193 Member States had paid their assessments in full. Major contributors including the United States, China, Russia, and Mexico—had yet to complete payments. The UN ended 2024 with $760 million in unpaid dues and must return $300 million in credits to Member States in early 2026.
Guterres urged the adoption of a mechanism to suspend credit returns during liquidity shortfalls, warning that failure to act could trigger a $600 million credit return in 2027, nearly 20% of the budget.
Despite the cuts, funding will continue for 37 Special Political Missions, the Resident Coordinator System ($53 million), and the Peacebuilding Fund ($50 million). The Office of the High Commissioner for Human Rights (OHCHR) will expand regional offices in Addis Ababa, Bangkok, Beirut, Dakar, Panama City, Pretoria, and Vienna.
The budget reflects the UN80 reform initiative, aimed at streamlining operations and reducing costs. Measures include consolidating payroll, relocating functions to lower-cost duty stations, and creating shared administrative platforms in New York and Bangkok.
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