By Md Mahir Daiyan
The United Nations is facing one of the most severe financial crises in its history, with Secretary-General Antonio Guterres warning that the organisation could run out of cash by July 2026 unless urgent reforms are made or member states pay their dues in full and on time.
In a letter sent to all 193 UN member states, Guterres described the situation as a “deepening liquidity crisis” that threatens programme delivery and raises the risk of an operational collapse across the UN system.
At the end of 2025, outstanding member state contributions reached a record $1.568 billion, more than double the previous year’s arrears. Despite a 7% cut to the UN’s 2026 regular budget, reducing it to $3.45 billion, chronic underpayment means even this reduced budget may not be fully implemented.
A significant portion of the shortfall stems from delayed or withheld payments by major contributors, including the United States, where funding reductions introduced during the Trump administration continue to impact multilateral institutions.
UN officials warn of a “vicious financial cycle”, in which programmes are suspended due to lack of cash, yet unspent funds must still be returned at the end of the year even if the money was never received.
The financial strain is already forcing cuts to essential services worldwide. Peacekeeping missions, humanitarian aid delivery, and development programmes are under threat, particularly in fragile and conflict-affected regions.
In Gaza, Sudan, and Afghanistan, funding shortages have led to reductions in life-saving services, including maternal health care and support for survivors of sexual violence. The United Nations Population Fund (UNFPA) has confirmed the closure of 40 safe spaces in Sudan and the withdrawal of support for 409 midwives in Afghanistan due to budget shortfalls.
From an environmental perspective, central to Greentime News’ mission, the crisis poses a serious threat to global sustainability efforts.
Guterres has warned that without immediate action, programmes under the United Nations Environment Programme (UNEP) and broader climate initiatives could face drastic cuts. This includes UN-supported work tied to the Paris Agreement, biodiversity protection, ocean conservation, and renewable energy transitions.
As climate-related disasters intensify worldwide, UN-led humanitarian responses — already stretched thin — may be further weakened, leaving vulnerable communities without critical support.
Analysts warn that without reform, the UN could face conditions akin to bankruptcy by 2027, with up to 20% of its budget left unspent and returned, deepening the crisis rather than resolving it.
“Either all Member States honour their obligations to pay in full and on time,” Guterres stated, “or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse.”
As the world confronts overlapping crises — from climate change and biodiversity loss to armed conflict and humanitarian emergencies — the potential operational failure of the United Nations raises urgent questions about the future of multilateral cooperation, global stability, and green progress.
Member states are now under growing pressure to act swiftly, as the cost of inaction could be a profound setback for both people and the planet.