The UN could run out of money as early as August: what is known about the debts of the US and China
This is according to The Wall Street Journal.
What has happened to the UN’s finances
The UN has found itself in a difficult financial situation due to payment delays from its largest donors – the US and China.
According to The Wall Street Journal, these two countries together account for around 42% of the organisation’s core budget. Due to debts and delays in contributions, the UN is already cutting costs, closing offices, reducing staff numbers and scaling back some peacekeeping and humanitarian programmes.
UN Secretary-General António Guterres had previously warned of the risk of the organisation’s financial collapse. In January, he spoke of an “inevitable financial collapse” due to unpaid contributions, primarily from the US.
How much do the US and China owe?
According to the WSJ, the US owes the UN over $4 billion. Reuters previously reported that in early February, the US debt to the UN’s regular budget stood at $2.19 billion, with a further $1.88 billion owed to current peacekeeping missions and $528 million for past peacekeeping operations.
China, according to the WSJ, still owes the organisation around $455 million following a recent payment of nearly $850 million. Beijing, however, states its readiness to fulfil its financial obligations to the UN.
What the US is demanding
Washington is linking further financial support for the UN to reforms and cost-cutting.
Reuters reported that the US conditions include cost-cutting, reducing travel privileges for senior and mid-level officials, reforming the UN pension system, reviewing ineffective peacekeeping missions, and limiting China’s influence within the organisation.
In response, Guterres emphasised that US arrears to the UN on mandatory contributions are “non-negotiable”, meaning they should not be subject to political conditions or negotiations on reforms.
Other donors are also cutting funding
The problem is not limited to the US and China.
According to the WSJ, other major donors are also cutting funding. In particular, the UK and Germany have reduced spending on humanitarian programmes, whilst the publication links the reduction in contributions from Sweden and the Netherlands to political changes in those countries.
This is putting additional pressure on UN programmes tackling hunger, disease, humanitarian aid and security missions.
When the money might run out
According to forecasts, if the situation does not change, the UN’s funds could run out by mid-August.
The WSJ reports that due to the shortfall, the organisation has already been forced to implement severe cost-cutting measures: cutting thousands of jobs, restricting expenditure, scaling back peacekeeping operations and delaying payments to countries that provide troops for UN missions.
Why this matters
The UN’s financial crisis is not just a matter of salaries or administrative costs.
The organisation’s funds support peacekeeping missions, humanitarian programmes, and aid to countries during famines, epidemics, wars and natural disasters.
If the deficit deepens, the UN will be forced to scale back its presence precisely where its programmes are often one of the few sources of international aid.
What lies ahead
The UN’s financial problems coincide with a political period in which the organisation must prepare to select a successor to António Guterres. His successor is due to be confirmed by the end of 2026.
Against this backdrop, the issue of money becomes not a technical detail, but part of a broader discussion about what the UN’s role should be and who actually influences its work through funding.
Follow us on Telegram
