JUST IN : The U.N. has warned people to prepare for a financial collapse after President Trump cuts U.S. funding.
UN Secretary-General António Guterres warned on
January 30, 2026, that the United Nations is facing an "imminent financial collapse" and could run out of cash by July 2026. The crisis is driven by a record $1.57 billion in unpaid dues from member states and rigid financial rules that exacerbate liquidity issues.
While the warning focuses on the internal solvency of the UN rather than a global macroeconomic collapse, officials cautioned that a shutdown would halt critical humanitarian work and peacekeeping missions worldwide.
U.S. Funding Cuts and Withdrawals
The financial crisis has been significantly intensified by actions from the Trump administration in early 2026:
Mass Withdrawals: On January 7, 2026, President Trump signed a memorandum directing the U.S. to withdraw from 66 international organizations, including 31 UN entities.
Withheld Payments: The U.S., the UN's largest contributor, declined to pay its core budget dues in 2025 and provided only 30%of expected peacekeeping funding.
Total Arrears: U.S. unpaid obligations currently include $2.19 billion for the regular budget and $1.88 billion for active peacekeeping missions.
Agencies Affected: Key entities facing cuts or withdrawal include the World Health Organization (WHO), the UN Human Rights Council, and various climate-focused commissions.
Impact on Global Operations
The UN has already begun implementing emergency measures to manage the shortfall:
Personnel & Programs: Agencies like UN Women have closed clinics in Afghanistan, and the World Food Programme has reduced rations for Sudanese refugees.
Operating Restrictions: At the Geneva headquarters, measures include turning off escalators and reducing heating to save costs.
Potential Shutdown: Guterres warned that if liquidity is exhausted, the UN may have to close its New York headquarters by August 2026 and cancel the General Assembly in September.
Guterres has urged member states to either pay their dues in full or agree to a fundamental overhaul of financial rules to prevent the organization's bankruptcy.