UN Struggles with Severe Funding Shortfall as Member States Fall Behind on Payments

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Flag of the United Nations flies over the UN Headquarters building in New York City, NY. Uploaded on September 17, 2016. USAID photo

TEMPO.CO, Jakarta - As of early May 2025, United Nations Member States have paid just US$1.8 billion towards the UN’s US$3.7 billion regular budget for the year, leaving approximately US$2.4 billion in unpaid assessments when including arrears from previous years, according to UN financial reports dated April 30.

Quoting the official UN website, The United States remains the largest debtor, owing about US$1.5 billion, as the previous Trump Administration withheld funds citing efforts to cut what it described as unnecessary spending.

Other major contributors with outstanding payments include China (US$597 million), Russia US($72 million), Saudi Arabia (US$42 million), Mexico (US$38 million), and Venezuela (US$38 million), with an additional US$137 million unpaid by other Member States.

The UN’s peacekeeping budget is also facing a severe shortfall, with US$2.7 billion in unpaid contributions as of April 30.

In response to the mounting fiscal challenges, UN Secretary-General António Guterres launched the UN80 initiative in March aimed at improving efficiency, streamlining operations, and cutting costs, including proposals for a possible 20 percent reduction in staff through eliminating duplication.

Impact on Women, Health, and Refugee Support

The funding crisis extends beyond the regular UN budget, affecting specialized agencies and humanitarian programmes funded through separate channels.

The UN Population Fund (UNFPA) has warned that women and girls in crisis-affected countries such as the Democratic Republic of the Congo (DRC), Haiti, Sudan, and Afghanistan are already experiencing reduced support. Budget cuts have hampered the hiring of midwives, the supply of essential medicines, deployment of health teams, and provision of safe spaces for survivors of sexual violence.

In Mozambique, nearly 750,000 displaced persons and refugees face urgent protection needs. The UN Refugee Agency (UNHCR) has cautioned it may be forced to suspend critical services including healthcare, education, and gender-based violence support due to only one-third of its funding appeal being met.

HIV/AIDS programmes are also threatened. In Tajikistan, UNAIDS Country Director Aziza Hamidova reports that 60 percent of HIV programme support is at risk, resulting in the closure of community health centers, reduction of outreach efforts, and a steep decline in access to PrEP testing and counseling.

Funding Gaps Jeopardize Crisis Response

The Office for the Coordination of Humanitarian Affairs (OCHA), which leads the UN’s crisis response efforts, has raised alarms about the cascading effects of funding shortages.

In Sudan, just 13 percent of the US$4.2 billion humanitarian appeal for 2025 has been received, forcing 250,000 children out of school. The DRC has seen a 38 percent surge in gender-based violence cases, even as programmes face closure.

Cholera response efforts in Haiti are at risk of collapse, while Ukraine has received only 25 percent of its humanitarian funding appeal for the year, threatening vital services.

UN Emergency Relief Coordinator Tom Fletcher has announced staff reductions and the scaling back of certain country programmes due to the funding crisis.

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