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UN will cut 2026 budget by $577m by slashing workforce

04-12-2025

UNITED NATIONS: The United Nations is set to implement deep budgetary and staff reductions in 2026, as unpaid dues from member nations soar to a staggering $1.59 trillion, according to an announcement by Secretary-General Antonio Guterres.

Presenting the organization’s financial plan for the upcoming year, Guterres stated that the core budget for 2026 will be set at $3.24 billion.

This marks a significant cut of $577 million, or 15.1 per cent, from the 2025 allocation. To achieve these savings, the world body will eliminate 2,681 positions across its various agencies, representing an 18.8 per cent reduction in its workforce.

The Secretary-General attributed the drastic measures to a persistent liquidity crisis, driven primarily by unpaid mandatory contributions from several major member states.

A separate UN disclosure identified the United States, China, Russia, and Mexico as the nations with substantial outstanding dues as of September.

“Those vacancies do not correspond to a political decision oriented by a strategic priority, but simply by the fact that people left, and we have not the money to pay for the replacement because of the liquidity crisis,” Guterres explained.

He noted that approximately 18 per cent of UN posts are already unfilled due to the financial shortfall, though these are separate from the positions now slated for elimination.

The targeted cuts, he said, “correspond to functions that, in our opinion, can be done better by others or can be reduced by efficiencies.”

Despite the sweeping austerity, Guterres confirmed the budgets for two critical areas would be shielded from reductions. The UN Relief and Works Agency for Palestine Refugees (UNRWA) and the Development Account for Africa will maintain funding at 2025 levels.

“I made the decision to exempt UNRWA from any reductions that would have dramatic consequences on the backbone of the entire humanitarian response in Gaza,” the UN chief stated.

Further cuts will be applied to special political missions, with their budget set at $543.6 million for 2026, a sharp decrease of $149.5 million, or 21.6 per cent, from the previous year. This will be accomplished by closing some missions and scaling back operations in others.

As part of a longer-term cost-saving strategy, the UN continues to reduce its expensive footprint in New York City, home to its headquarters. Guterres revealed plans to terminate two office leases in New York by the end of 2027, which is expected to yield annual savings of $24.5 million starting in 2029. Since 2017, the organization has already saved $126 million by shuttering other offices in the city.

In January, United Nations said Thursday its humanitarian relief agency UNRWA would continue working in all Palestinian territories, including east Jerusalem, despite Israeli legislation coming into force that cuts ties with the organization.

Israel decided to ban the UN agency for Palestinian refugees following accusations some of its staff belong to Hamas.

“UNRWA clinics across the occupied West Bank, including East Jerusalem, are open. Meanwhile, the humanitarian operations in Gaza continues, including with UNRWA work there,” said Stephane Dujarric, spokesman for UN chief Antonio Guterres.

UNRWA has long been the lead agency in coordinating aid to Gaza.

A series of investigations found some “neutrality related issues” at UNRWA but stressed Israel had not provided evidence that a significant number of its staff belonged to “terrorist” organizations. (Int’l Monitoring Desk)

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