UN Slashes 2026 Budget by $577 Million Amid Mounting Unpaid Dues United Nations Secretary-General Antonio Guterres announced a significant budget reduction for 2026 on Monday, trimming the organization's overall spending by 15.1 percent to $3.24 billion—a cut of $577 million from the previous year. The move comes as unpaid contributions from member states have ballooned to $1.59 trillion as of September, primarily from major contributors including the United States, China, Russia, and Mexico. To bridge the gap, the UN plans to eliminate 2,681 positions across various agencies, representing an 18.8 percent workforce reduction. These cuts target roles that Guterres described as potentially more efficiently handled by external partners or streamlined operations. Guterres emphasized that about 18 percent of current UN posts are already unfilled due to the liquidity crunch, with departures going unreplaced because of insufficient funds. "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," he explained. Certain programs will be shielded from the reductions. The budget for the UN Relief and Works Agency for Palestine Refugees (UNRWA) remains unchanged, given the surging humanitarian needs in Gaza and the West Bank. Similarly, funding for the Development Account and advocacy efforts on Africa's development will stay at 2025 levels to avoid "dramatic consequences" on critical aid delivery. Special political missions, which support peacekeeping and conflict resolution, face a steeper 21.6 percent drop to $543.6 million—a $149.5 million decrease. This will involve closing select missions and scaling back others to align with fiscal realities. On the cost-saving front, the UN is accelerating efforts to downsize its footprint in high-rent New York, where its headquarters is located. Plans include ending two leases by late 2027, projecting annual savings of $24.5 million starting in 2029. Since 2017, similar consolidations have already yielded $126 million in efficiencies. Guterres framed the adjustments as necessary for sustainability, noting the UN's role in global challenges requires prudent management amid financial strains. The announcement underscores ongoing debates about member state contributions and the organization's ability to maintain operations in an era of geopolitical tensions.