UN faces imminent financial collapse in August if member states don't pay dues

The United Nations is grappling with a severe liquidity crisis that threatens its ability to operate, with a top official warning of an imminent financial collapse in August.

Catherine Pollard, the UN's under-secretary-general for strategy, policy, and compliance, informed the General Assembly's Fifth Committee that current cash reserves can only cover obligations until mid-August. This dire situation stems from delayed and insufficient payments from member states.

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The current cash balance is only sufficient to meet legal obligations until mid-August.

Pollard highlighted a concerning trend in revenue collection. The first quarter's collection rate dropped to 40% in 2025 from 46% in 2026, and the second quarter's collection was 52% in 2024 and 52% in 2025. The UN ended 2025 with a record $1.57 billion in overdue bills, marking the lowest revenue collection in seven years. While April 2026 showed a slight improvement in collection rates compared to the previous year, Pollard anticipates only 91.1% collection for the full year.

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As we have pointed out on several occasions in recent years, predictability in the timing and amount of income is fundamental to managing the organization's cash outflows and planning expenditure adequately and safely, without risk of default.

The predictability of income is crucial for the UN's financial management. Pollard urged member states to commit to earlier payments and communicate their payment plans. The organization's ability to fund programs depends on this financial security.

As of May 29, 111 member states had paid their dues in full. However, the problem lies with the two largest contributors, the U.S. and China, which together account for 42% of the annual budget. By April 30, the U.S. owed $2.037 billion, including arrears, while China owed $429 million. This significant shortfall jeopardizes the UN's peacekeeping missions and global operations.

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Therefore, we urge member states to commit to paying earlier and to communicate their payment plans as soon as possible. The more certainty we have regarding collections, the greater our ability to commit funds when we need them for program execution.