The United Nations is on the verge of a financial crisis due to significant arrears in contributions from the United States and China to the organization’s budget. According to reports, UN funds could be completely exhausted by mid-August 2026, The Wall Street Journal reports.
Source: PRYAMYI
According to the publication, the United States owes the UN more than $4 billion, while China owes around $455 million. However, at the end of May, during a visit by Chinese Foreign Minister Wang Yi, Beijing transferred nearly $850 million.
Journalists note that the US and China together provide about 42% of the organization’s budget. Due to the funding shortfall, the UN has already frozen renovation works, closed some offices, and reduced around 3,000 Secretariat staff members.
China has announced plans to fully repay its debt and called itself one of the organization’s key financial donors. Meanwhile, the United States stated it is ready to restore funding after certain conditions are met, including a ban on business-class flights and partial replacement of staff with machine translation systems.
According to the report, the financial crisis at the UN has also been exacerbated by reduced contributions from other donor countries. The United Kingdom and Germany have cut funding for humanitarian programs, while reductions from Sweden and the Netherlands are linked to domestic political changes.
Back in October 2025, UN Secretary-General António Guterres warned about the risk of a financial collapse of the organization, stating that such a scenario is “very real.”
Amid the crisis, the importance of the upcoming UN leadership is increasing — member states are expected to elect a new Secretary-General by the end of 2026.
The UN Charter prohibits the organization from taking loans, while about 70% of expenses are spent on staff salaries.
Due to the funding shortfall, the UN has already accelerated the withdrawal of peacekeeping contingents from Africa, reduced peacekeeping mission budgets, and suspended payments to countries providing troops for operations, including Nepal and Bangladesh. Interpreter work shifts have also been reduced.