Trump administration begins transfer of $725m to UN, amid billions owed

The Trump administration has initiated the transfer of $725 million to the United Nations, a move aid experts view as a positive step toward settling billions in outstanding payments. This development, detailed in a congressional notification from August 4, occurs as the U.S. has previously slashed funding for many UN agencies and criticized the global body.

While the administration has not provided immediate reasons for the payment, it precedes an anticipated address by Donald Trump at the UN General Assembly in New York next month. UN Secretary-General António Guterres had earlier warned of "imminent financial collapse" due to member states' unpaid contributions, prompting significant budget cuts within the organization.

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It keeps the ship afloat a little longer.

The $725 million represents less than 20% of the over $4 billion the UN stated it was owed by the United States in May, although Washington maintains the actual figure is lower and that some payments have been made. Eugene Chen, a former UN official, suggested the transfer would temporarily help cover UN salaries but might not suffice for the entire period, stating, "It keeps the ship afloat a little longer."

Ronny Patz, an expert in UN finance at the German thinktank IDOS, noted that a substantial payment now could prevent immediate spending cuts. "If they pay a big chunk, the UN still runs on zero reserves but it gets through the year," Patz said. "If they don’t pay, the UN might really be in trouble for the last two or three months of the year in terms of paying salaries and keeping the doors open." Failure to pay arrears exceeding two years of annual fees could lead to the U.S. losing its voting rights in the General Assembly in January, though grace periods are possible.

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If they pay a big chunk, the UN still runs on zero reserves but it gets through the year. If they don’t pay, the UN might really be in trouble for the last two or three months of the year in terms of paying salaries and keeping the doors open.