UN Chief Proposes Slashing 2026 Budget by €497 million, cutting 18% of jobs

UNITED NATIONS (Reuters) - On Monday 1 December 2025, United Nations Secretary-General Antonio Guterres formally proposed slashing the core UN budget for next year by $577 million (€497 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 US arrears.

"We ended 2024 with $760 million (€654 million) in arrears, of which $709 million (€620 million) is still outstanding from 2024. We have also not received $877 million (€755 million) of 2025 dues and so thus, arrears now stand at $1,586 million (€1.35 billion),” Guterres told the 193-member UN General Assembly budget committee.

He proposed a core budget of $3.238 billion (€2,788 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 UN agencies, funds and programmes - 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 UN core budget, paying the maximum 22% according to assessments agreed upon by the General Assembly. US President Donald Trump has described the UN as having "great potential" but said it is not fulfilling that. He wants to slash US funding. 

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

UN peacekeeping has a separate budget. In October, senior UN 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.