Published by Global Banking & Finance Review®
Posted on March 12, 2025
4 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe UN plans cost-cutting measures amid financial uncertainty and Trump's policies, as it faces a liquidity crisis with unpaid dues.
By Michelle Nichols
UNITED NATIONS (Reuters) - The United Nations will get a "facelift" as it turns 80 amid a cash crisis this year, seeking ways to improve efficiency and cut costs, senior U.N. officials said on Wednesday - but don't liken it to the U.S. effort by President Donald Trump.
"No DOGE, no Musk," said one official, speaking on condition of anonymity because of the sensitivity of the matter, referring to the Department of Government Efficiency - created by Trump and spearheaded by Elon Musk - which has made sweeping cuts to the U.S. federal workforce.
The aim of a task force established by U.N. Secretary-General Antonio Guterres would be to give the world body and its agencies, funds and programs a "facelift," said a second U.N. official, also speaking on condition of anonymity.
The officials acknowledged that Trump's return to office in January had added urgency and ambition to the efficiency effort.
Trump said in February that the U.N. has "great potential and ... we'll continue to go along with it, but they got to get their act together." The U.N. pushed back at the time, saying Guterres has worked tirelessly to implement reforms.
"My objective is to move as soon as possible in areas where I have the authority – and to urge member states to consider the many decisions that rest with them," Guterres told reporters on Wednesday when announcing his UN80 initiative.
"This goes far beyond the technical. Budgets at the United Nations are not just numbers on a balance sheet – they are a matter of life and death for millions around the world. We must ensure value for money while advancing shared values," he said.
The move comes as the United Nations, founded in October 1945, faces a liquidity crisis for at least the seventh year in row. Not all 193 U.N. member states pay their mandatory regular dues in full or on time, Guterres said.
UNCERTAINTY
The regular budget for the United Nations in 2025 is $3.7 billion, which includes political, humanitarian, disarmament, economic, social affairs and communications work. Contributions to most U.N. agencies, funds and programs - such as the World Food Programme and children's group UNICEF - are voluntary.
The top two contributors to the regular budget, according to assessments agreed by the U.N. General Assembly, are the United States and China. Washington pays the maximum 22%, while Beijing's contribution rose 5% this year to 20%.
However, China is now paying its dues at the end of the year - six months later than it once did. The United States is in arrears, owing $1.5 billion. Washington last made a payment of $275 million in November, under Trump's predecessor, Joe Biden.
The second U.N. official said there was "a lot of uncertainty" with the budget this year. China had assured the U.N. it would pay in full this year, but it was unclear when, while Washington was not yet in a position to indicate to the U.N. how much it would contribute, the official said.
"We have decided, between January and August, to be very prudent financially," the official said.
As of March 7, 73 member states - just over one third - had paid their regular budget assessments in full. Amid the cash crunch, the United Nations has reduced planned spending by up to 20% and imposed a hiring freeze.
When ask about possible job cuts as a result of the UN80 efficiency effort, the official said: "At this point I can't say. What I will say is that everything is on the table and nothing is off the table."
(Reporting by Michelle Nichols. Editing by Gerry Doyle)
The article discusses the UN's efforts to cut costs and improve efficiency amid financial uncertainty and Trump's policies.
Trump's policies have added urgency to the UN's cost-cutting and efficiency efforts.
The UN is experiencing a liquidity crisis due to unpaid member dues and is implementing spending cuts.
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