Here’s what Trump decided to do.
The United Nations is warning of a looming financial crisis as the Trump administration dramatically reshapes U.S. foreign policy and pulls American funding from international organizations it says no longer serve U.S. interests. According to U.N. officials, the global body could face a serious cash shortfall as early as this summer.
In a January 28 letter sent to foreign ambassadors, U.N. Secretary-General António Guterres acknowledged that the organization is facing record levels of unpaid dues. He blamed rigid budget rules and long-standing financial practices that, he admitted, have left the institution vulnerable.
Guterres described the situation as a “Kafkaesque cycle,” explaining that the U.N. is sometimes forced to return funds labeled as “unspent” even when those payments were never received in the first place. By the end of 2025, unpaid member dues had surged to a record $1.568 billion, while collections covered just 76.7 percent of required contributions.
Unless payment levels improve significantly, Guterres warned that the United Nations may be unable to fully implement its 2026 budget and could face a liquidity crisis by mid-year.
A senior diplomatic source told Fox News Digital that the financial problems did not emerge overnight and placed much of the responsibility on U.N. leadership. According to the source, warning signs were visible well before the current shortfall, but meaningful reforms were repeatedly delayed.
Major donor nations, including the United States, had been urging efficiency and accountability for years. When changes were finally introduced, the source said they were applied broadly rather than focusing on wasteful or ineffective programs. As a result, even core agencies were impacted while deeper structural problems remained untouched.
“He is going to go down as the worst secretary-general in the history of the United Nations,” the source said.
Guterres’ warning comes as the United States, long the U.N.’s biggest financial backer, has cut back voluntary contributions and withheld some required payments, moves that align with President Trump’s broader shift toward prioritizing national sovereignty and taxpayer responsibility.
In January 2026, the Trump administration formally withdrew from the World Health Organization and began exiting dozens of international bodies, including multiple U.N.-affiliated agencies. Administration officials have argued that many of these organizations consume billions in U.S. funding while failing to align with American priorities.
The funding squeeze is already producing real consequences. Reports indicate that several U.N. agencies, including food aid and refugee programs, are preparing layoffs and service reductions as global contributions fall to their lowest levels in nearly a decade.
Hugh Dugan, who previously served on the National Security Council overseeing international organizations, told Fox News Digital that the current instability stems from deep-rooted structural problems, not a sudden breakdown.
“We’ve heard this before,” Dugan said, pointing to repeated warnings from U.N. leadership over the years. He argued that inconsistent revenue streams and outdated financial practices have undermined donor confidence for decades.
With roughly 11 months remaining in his term, Dugan suggested Guterres is now focused on keeping the organization operational until his departure.
“The doors will remain open, maybe just,” Dugan said. “But that’s his legacy.”
Responding to questions about President Trump’s newly unveiled peace board, Dugan said it is not intended to replace the United Nations or its charter, but rather to operate as a practical, deal-focused initiative.
Despite mounting criticism over its finances and effectiveness, Dugan acknowledged that the United Nations retains one key advantage.
“When the U.N. calls a meeting today, it’s routine to see more than 100 heads of state in the room,” he said. “That ability to convene leaders still matters.”
