What happens if the UN goes bankrupt? Trump says the fix is “very easy”
A UN letter dated January 28, 2026 warns of a record US$1.57 billion in unpaid assessed contributions by the end of 2025 and says the organisation could run out of cash by July without reform or full and timely payments. Donald Trump told Politico he could “fix” the issue quickly.
The UN Secretary-General said in a letter to ambassadors dated January 28, 2026 that, by the end of 2025, unpaid assessed contributions had reached a record US$1.57 billion, more than double the level in 2024, even though more than 150 member states had paid their contributions in full. However, the letter did not name the countries that remain in arrears.
The organisation’s budget problem is a long-running issue, built up over time as some member states fail to pay their mandatory contributions in full, while others pay late. This has forced the UN to adopt austerity measures, including slowing new hiring and cutting spending in several areas. If the situation continues, the UN could run out of money by July.
The Economic Times has compiled several key reasons behind the problem, beginning with:
- Persistent arrears, particularly from major contributors, affecting staff salary payments, the ability to sustain peacekeeping operations, and the coordination of emergency relief.
- US cuts in support: The United States, the UN’s largest contributor, has significantly reduced support, declining to fund both the regular operating budget and peacekeeping missions. It has also withdrawn from some UN agencies, describing them as a “waste of taxpayers’ money”.
- Donald Trump’s policy stance: Trump has accused the UN of being ineffective and not supporting US-led peace efforts. In 2025, Washington did not pay its assessed contributions to the UN’s core budget at all, and paid only about 30% of the projected peacekeeping budget.
- Withdrawal from the World Health Organization (WHO): The United States formally withdrew from the WHO last week, although WHO legal advisers have confirmed the US still has a legal obligation to pay arrears for 2024 and 2025.
- Cuts by other countries: Not only the US—both the United Kingdom and Germany have also announced significant cuts to foreign aid budgets.
From these factors, the impact of the funding shortage is already being felt in operational areas, such as:
- Afghanistan: One of the countries with the world’s highest maternal mortality rates. UN Women has had to close maternal and child clinics, affecting life-saving care for mothers.
- Sudan: The World Food Programme (WFP) has had to reduce food rations for conflict-displaced refugees due to funding shortages.
If the budget shortfall is not resolved, the UN has warned that programmes could be affected as follows:
- Peacekeeping missions: Potential constraints on compensation payments to troops, logistical support, and the continued operation of missions in conflict zones.
- Humanitarian assistance: Agencies such as the WFP and UNICEF may receive reduced allocations for life-saving operations.
- Development programmes: Long-term sustainable development programmes may have to be scaled back, directly affecting vulnerable populations.
Ultimately, the UN stressed that if it cannot pay staff salaries on time or meet financial obligations, it could cause even broader disruption to operations.
“The UN has only two choices: member states must pay their contributions in full and on time, or the organisation must undertake a major overhaul of its financial system. Otherwise, the UN may face a severe financial crisis that prevents it from fully implementing its 2026 annual programme, which was approved in December 2025, and cash in the regular budget could run out by July,” Secretary-General António Guterres said.
Trump says the crisis is easy to solve
Speaking to Politico on Sunday (January 31, local time), Trump said he did not know there were unpaid UN contributions, but he was confident he could “fix this very easily” and make other countries pay simply by asking.
“If everyone came to Trump and told him, I would make everyone pay, just like I made NATO pay,” Trump said, referring to himself in the third person, before adding:
“All he has to do is call those countries, and they will send a cheque within minutes.”
Trump’s remarks came after reports that senior UN officials had warned the organisation might need to scale back operations or even shut down its New York headquarters if it faced a cash shortage—an idea Trump said he disagreed with.
“I don’t think that’s appropriate. The UN will not move from New York and will not move out of the United States, because the UN has enormous potential,” Trump said, adopting a tone that defended an institution he has frequently criticised.
The stance is notable for an “America First” president, given that Trump has previously withdrawn from multiple multilateral organisations in both his first term and his current term.
