KEY POINTS

• UN plans 15% budget cut in 2026.

• U.S. arrears deepen financial pressure on the UN.

• Over 2,600 jobs are expected to be eliminated.

The United Nations is preparing to make its sharpest budget reduction in decades as Secretary-General Antonio Guterres outlined plans for a 15 per cent cut in 2026.

The proposal, revealed in letters sent to member states and staff on Tuesday, reflects the organisation’s mounting liquidity problems. Officials say the situation has worsened with U.S. President Donald Trump’s return to office and Washington’s failure to keep up with payments.

A senior UN official said the revised budget now stands at $3.238 billion, down from $3.7 billion previously projected. The change translates into a $500 million reduction and the elimination of 2,681 jobs. Guterres also said the move forms part of his UN80 Initiative, an effort to streamline the institution and make it more adaptable.

“For some colleagues, these changes may mean relocation for themselves and their families. For others, they mean changes in functions or reporting lines. And for some, separation from service,” Guterres wrote.

Trump’s policies deepen financial squeeze

The cuts will be applied across the UN’s three pillars: peace and security, human rights, and sustainable development.

Programs benefiting least-developed countries will be spared, according to the secretary-general. Still, at least 200 personnel are expected to be relocated from New York and Geneva to cheaper hubs such as Nairobi.

Accoridng to Vanguard, the United States traditionally contributes 22 percent of the UN’s regular budget, which covers core operations separate from peacekeeping. Washington was $1.5 billion in arrears as of January and has made no payments this year under Trump’s administration, according to UN officials.

The General Assembly will vote on the 2026 budget later this year.