According to reports, the UN might struggle to pay its staff and suppliers by September due to a projected $200 million deficit in 2024, which could escalate to $1.1 billion by the end of 2025 unless budget cuts are implemented. It appears that this shortfall is affecting the organization’s ability to meet payroll and other financial obligations.
The UN has faced a 17% budget cut, amounting to $3.7 billion, as part of efforts to prevent defaults. Additionally, hiring new employees is likely to be suspended. In February, Secretary-General Antonio Guterres cautioned that UN peacekeeping forces could risk going unpaid by mid-2025.
Member states with strict budgetary rules find their contributions tied up, and a leaked memo from the Trump administration suggested halting mandatory US contributions to the UN. This memo, dating back to April, also recommended discontinuing funding for the UN and various other international organizations, alongside significant cuts to humanitarian and global health initiatives. However, it seems there hasn’t been any congressional endorsement for these proposals yet.
On February 4, President Donald Trump signed an order to withdraw US membership from the UN and review its support for international organizations.
Membership fees paid by member states are based on their economic size and are crucial for maintaining core functions of the UN, like assembly meetings, peacekeeping, and human rights monitoring, as noted by economists.
Delays in payments from some member nations, along with others not fulfilling their obligations, have intensified the financing crisis. In 2025, only 49 out of 193 member states paid their mandatory fees on time.
Notably, the US and China are the largest financial contributors to the UN, each covering roughly 20% of the organization’s budget. However, it seems China has also been tardy with its payments, according to reports.
