UN faces major crisis: 2026 budget slashed by $577 million, thousands of job cuts expected
Massive budget cuts ahead
The UN plans to reduce its core 2026 budget by around $577 million — a 15% cut — and eliminate nearly one-fifth of its permanent staff. Secretary-General António Guterres pointed out that the liquidity crisis stems from more than $1.5 billion in unpaid member contributions.
“Our race toward bankruptcy is not an exaggeration — member states’ arrears are genuinely threatening our ability to operate,” he stressed.
The United States remains the largest defaulter, accounting for 22% of the budget and frequently delaying payments of hundreds of millions of dollars in recent years.
The proposed reduction would lower the core budget to about $3.238 billion, down from the current $3.7 billion. Cuts would affect UN activities outside peacekeeping missions, including political affairs, disarmament, economic and social programs, human rights, communications, and support services.
Thousands of jobs at risk
The cash crisis mainly comes from unpaid mandatory contributions, totaling around $1.6 billion, including several hundred million overdue from previous years.
Beyond the core budget, the UN is also reducing spending on peace operations. Officials warn that about a quarter of personnel could be cut in nine missions. Over 2,600 positions may be eliminated, lowering employment from the planned 13,800 to around 11,600 posts.
“Without the arrears being settled, we have no choice but drastic cuts,” Guterres said.
The deepest reductions will affect administrative departments and large organizational units, while programs supporting the least developed countries, landlocked developing nations, small island states, and Africa’s development priorities are expected to be protected.
“I have decided to exempt UNRWA — the UN agency for Palestinian refugees — from cuts that could have dramatic consequences for the humanitarian response in Gaza,” the Secretary-General emphasized.
Geopolitical tensions
The planned cuts are heightening tensions between countries pushing for a leaner UN and those relying heavily on multilateral support for peacebuilding and development financing.
In negotiations, developed nations typically push for spending limits, while the G77 plus China emphasize the need to ensure resources for development mandates, decolonization, and special political missions.
UN officials and analysts describe the proposed budget as a “pragmatic adjustment to fiscal realities” designed to prevent a sudden cash crisis that could halt operations or delay staff salaries.
Budget decisions are ultimately in the hands of the Fifth Committee of the General Assembly, which traditionally seeks consensus between major donor states and developing countries.
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