The United Nations is facing one of the most severe financial crises in its history, with officials warning that the organization could run out of funds by mid-August.

The Wall Street Journal reported over the weekend that the United States and China, the two largest contributors to the UN Development Programme, have withheld billions of dollars in dues amid a broader conflict over influence in the international body.

UN Secretary-General António Guterres has warned that the UN is "lurching from crisis to crisis" as member states delay payments and demand sweeping reforms, noting that "the potential financial collapse of our organization is very real."

The United States currently owes more than $4 billion in back dues and peacekeeping contributions, while China still owes $455 million, despite sending approximately $850 million to the UN last week.

Washington and Beijing jointly fund 42% of the UN's core budget.

The funding shortfall comes as the Trump administration continues to push for significant changes at the UN, arguing that it is bloated, inefficient, and resistant to reform.

"What we are seeking is not to reject multilateralism, but to prioritize clarity and results over inefficiency and empty talk," said Michael Desmond, a senior US State Department official, at a UN Security Council briefing.

President Donald Trump has withdrawn the United States from several UN agencies and programs, including the World Health Organization, as part of a broader effort to reduce spending abroad and redirect taxpayer money to domestic priorities.

Administration officials have indicated that future US funding will be tied to more aggressive cost-cutting measures, including personnel reductions, travel restrictions, and increased use of technology to reduce expenses.

The financial difficulties have already forced the UN to implement unprecedented austerity measures.

The organization has cut 3,000 positions in its Secretariat, closed offices, reduced interpreter hours, and cut operating costs at its New York headquarters.

Officials have also postponed maintenance projects and implemented energy-saving measures across UN facilities.

The UN has also accelerated the withdrawal of troops from conflict zones and delayed payments to countries like Nepal and Bangladesh, which provide troops for international missions.

UN officials warn that if the financial crisis worsens, global staff could go without pay, disrupting humanitarian aid, food assistance, and security programs.

The funding dispute reflects a growing geopolitical rivalry between Washington and Beijing.

While Chinese officials have repeatedly portrayed Beijing as a guardian of the UN and multilateralism, analysts point out that China has increasingly delayed its payments in recent years.

UN observers believe this strategy gives Beijing leverage in budget negotiations and policy debates.

As China's economy has grown, its share of UN dues has risen dramatically over the past decade, from about 5% of the regular budget to more than 20% — nearly on par with the US contribution, which is capped at 22%.

These financial challenges come as the UN faces increasing demands related to artificial intelligence governance, biosecurity threats, space regulation, global conflicts, and humanitarian crises.

Adding to the strain, other traditional donors such as Britain, Germany, Sweden, and the Netherlands have also reduced their contributions amid domestic budget pressures and shifting political priorities.

The Trump administration has continued to provide humanitarian aid through the UN Office for the Coordination of Humanitarian Affairs (OCHA), donating $3.8 billion so far.

However, this remains a significant reduction compared to the more than $10 billion the US provided annually in recent years.

US Ambassador Mike Walz has pledged to pay a "substantial" amount to meet the UN's obligations, but has conditioned further funding on more aggressive budget cuts and structural reforms.

Under UN rules, member states can lose their voting rights in the General Assembly if they fall two years behind on their dues, a threshold the United States could reach as early as 2027 if it fails to pay its contributions.

As the UN prepares to elect a successor to Secretary-General Guterres, officials are increasingly warning that the organization could face its worst financial crisis ever if its largest contributors do not act.

While the United States has not planned a full withdrawal from the UN, it has embarked on a broader disengagement from multilateralism, with President Trump signing a presidential memorandum in January 2026 to withdraw from a total of 66 international organizations and agreements, including 31 UN-affiliated bodies.

US NNP=Chief Reporter Sung Ku Hong / Special Correspondent for this paper NNP info@newsandpost.com