UN’s $3.7 billion budget faces a 20% slash as unpaid US dues and funding cuts trigger a funding shortfall.
May 30, 2025: The United Nations Secretariat is preparing to slash its $3.7 billion budget by 20% and cut about 6,900 jobs amid a financial crisis exacerbated by unpaid US dues and funding cuts. According to an internal memo seen by Reuters, staff have been directed to submit plans for the cuts by June 13, with changes taking effect from January 1.
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The crisis is linked to the US, which funds nearly a quarter of the UN’s annual budget. The US currently owes nearly $1.5 billion in arrears and this fiscal year’s obligations. US foreign aid cuts under President Donald Trump have also gutted humanitarian agencies.
The memo, authored by UN Controller Chandramouli Ramanathan, did not explicitly mention the US, instead calling the planned cuts part of the “UN80” review launched in March to reshape the UN to meet 21st-century challenges.
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Secretary-General Antonio Guterres has told diplomats he is weighing a major overhaul that could include merging departments, relocating staff to cheaper cities, consolidating agencies, and eliminating bureaucratic duplication.
“These are times of peril, but they are also times of profound opportunity and obligation,” Guterres said. “Uncomfortable and difficult decisions lie ahead. It may be easier to ignore them, but that road is a dead end.”
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The financial shortfall has been worsened by China’s repeated late payments, with both nations accounting for over 40% of UN funding. Trump’s administration has also cut hundreds of millions of dollars in discretionary funds, abruptly halting numerous humanitarian programs.
The proposed US budget for the next year seeks further cuts to UN funding, including for peacekeeping missions. Tom Fletcher, head of the UN Office for the Coordination of Humanitarian Affairs, said the US cuts would force his agency to reduce staff by 20% to address a $58 million funding gap.
Richard Gowan, UN director at the International Crisis Group, said it’s unclear whether the cuts will persuade the Trump administration to maintain funding. “Guterres might hope these moves show the UN is serious about reform,” Gowan said. “But it’s possible the US will just pocket the cuts and continue pressing for more.”
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UN job cuts, financial crisis, UN budget, US funding, humanitarian aid cuts, UN80 review, Antonio Guterres