US defaulting on dues dragging down UN: China Daily editorial

The United Nations now stands on the brink of a serious financial crisis, with UN Secretary-General Antonio Guterres saying in a letter to all UN member nations on Friday that cash for its regular operating budget could run out by July. "Either all member states honor their obligations to pay in full and on time — or member states must fundamentally overhaul our financial rules to prevent an imminent financial collapse," he said.

The crisis stems primarily from the chronic underpayment of dues by some member states, particularly the United States, which has historically been the largest financial contributor to the UN, accounting for 22 percent of its core budget. Yet the country now owes about $2.2 billion to the world body's regular budget, including $767 million for this year. The US recently withdrew from the World Health Organization with hundreds of millions of dollars in unpaid bills after the US administration had made it clear that it will withdraw from 66 international organizations, nearly half of them affiliated with the UN.

As a result, the UN ended 2025 with a record $1.57 billion in outstanding dues, more than double the amount outstanding at the end of 2024. The US did not pay any dues last year, according to the UN. The shortfall is compounded by outdated financial rules that mandate the return of unspent funds to member nations, even when those funds have not been fully collected. This "Kafkaesque" financial structure, as Guterres describes it, creates a paradox where the UN appears financially balanced on paper but is cash-strapped in reality.

The implications of this crisis are grave, threatening to undermine the UN's ability to execute vital peacekeeping, humanitarian, and developmental missions. The funding shortfall is not merely a fiscal challenge, but a profound test of global solidarity and responsibility. Addressing this crisis requires immediate and decisive action from all UN member states. Thus, countries that have not fulfilled their financial obligations must do so promptly. The US should recognize its responsibility for the UN's financial health and settle its outstanding dues. This is not only its legal obligation, but also a reflection of its willingness to uphold its proclaimed position as "a moral and responsible world leader".

Furthermore, there must be a concerted effort to reform the UN's financial framework. The current system, which refunds money it has never received, is unsustainable. Member states should work collaboratively to amend these rules, ensuring that the UN retains sufficient liquidity to operate effectively. This could involve establishing a contingency fund to buffer against delayed payments, or revising the refund policy to reflect actual cash inflows.

Long-term measures are essential to prevent future crises. The principle of "capacity to pay" should be rigorously applied to ensure a fair distribution of financial responsibilities. As China's deputy permanent representative to the UN, Dai Bing, has noted, the disproportionate financial burden on developing countries is neither reasonable nor sustainable. Developed nations must shoulder a fairer share of the financial load, reflecting their greater economic capabilities.

As the second-largest contributor to the UN regular budget — accounting for about 20 percent of the total — and peacekeeping assessments, China has always actively fulfilled its financial obligations to the UN. What China has done to steadfastly support the UN and multilateralism reflects its sense of responsibility as a major country.

In this multipolar world, the UN remains an indispensable pillar of international governance. The current financial crisis that the UN faces is a call to action as well as a reminder that the world body's strength lies in its collective support from its member states. It is imperative that all nations rise to this challenge with the urgency and commitment it deserves.