The United Nations is facing significant financial challenges, prompting Secretary-General Antonio Guterres to propose a 15% cut to the organization’s regular budget in 2026. This reduction, equivalent to approximately $500 million, aims to address chronic liquidity problems exacerbated by US President Donald Trump’s policies. The proposed budget, now standing at $3.238 billion, would result in the elimination of 2,681 jobs.

Guterres initially suggested maintaining the 2026 budget at the same level as 2025, around $3.7 billion. However, as part of his UN80 Initiative to enhance the organization’s agility and efficiency, he has worked to reduce the budget. The cuts will be implemented across the UN’s three pillars: peace and security, human rights, and sustainable development. Programs supporting least-developed nations will be spared.

The impact of these changes will be significant, with some staff members facing relocation, changes in job functions, or separation from service. At least 200 personnel will be relocated from Geneva and New York to less expensive cities like Nairobi. The proposed budget will be put to a vote in the General Assembly before the end of the year.

The UN has struggled with liquidity issues for years, largely due to some member states failing to pay their mandatory contributions in full or on time. The United States, which typically covers 22% of the UN’s regular budget, has been $1.5 billion in arrears since January and has made no payments since President Trump’s return to office. The future of US contributions to the organization remains uncertain, with Congress having voted to rescind previously approved funding and the US having already withdrawn from several UN agencies.

The proposed budget cut highlights the ongoing financial challenges facing the UN and the need for member states to fulfill their financial obligations. As the organization navigates these difficulties, it must balance its commitment to core activities with the need for fiscal responsibility. The outcome of the General Assembly vote will be crucial in determining the UN’s financial trajectory in 2026.