By Michelle Nichols

United Nations Secretary-General Antonio Guterres attends a press conference, during the UN Climate Change Conference (COP30), in Belem, Brazil, November 20, 2025. REUTERS/Anderson Coelho Purchase Licensing Rights , opens new tab

UNITED NATIONS, Dec 1 (Reuters) – United Nations Secretary-General Antonio Guterres on Monday formally proposed slashing the core U.N. budget for next year by $577 million and cutting more than 18% of jobs.

Guterres is seeking ways to improve efficiency and cut costs as the world body turns 80 this year amid a cash crisis, driven largely by U.S. arrears.

“We ended 2024 with $760 million in arrears, of which $709 million is still outstanding from 2024. We have also not received $877 million of 2025 dues and so thus, arrears now stand at $1,586 million,” Guterres told the 193-member U.N. General Assembly budget committee.

He proposed a core budget of $3.238 billion for 2026, a reduction of 15% compared with this year. That budget 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.

“Liquidity remains fragile, and this challenge will persist regardless of the final budget approved by the General Assembly – given the unacceptable volume of arrears,” Guterres said.

The United States is the top contributor to the U.N. core budget, paying the maximum 22% according to assessments agreed upon by the General Assembly. U.S. President Donald Trump has described the U.N. as having “great potential” but said it is not fulfilling that. He wants to slash U.S. funding.

Guterres launched a reform task force in March, known as UN80, which seeks to cut costs and improve efficiency.

U.N. peacekeeping has a separate budget. In October, senior U.N. officials said a quarter of peacekeepers in nine operations around the world would be cut due to a lack of money and as future funding from the United States remains uncertain.

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