The United Nations is facing a severe financial crisis, with plans to cut $500 million from its 2026 core budget and reduce its workforce by 20%, equating to at least 3,000 jobs out of 35,000. The UN’s core budget will decrease from $3.7 billion to approximately $3.2 billion, marking reductions of 15.1% in resources and 18.8% in posts compared with the 2025 budget. These cuts come amid a significant reduction in U.S. funding, which historically has contributed a substantial portion of the UN’s regular, peacekeeping, and humanitarian budgets. The funding shortfall is a direct consequence of the Trump administration’s policies on foreign aid and multilateral engagement.
The cuts impact go beyond personnel and budgets; they threaten the operational capacity of UN programs, including peacekeeping, humanitarian aid, and health services. UN Secretary-General António Guterres had previously set ambitious goals under the “pact for the future,” focusing on sustainable development and emerging global challenges like artificial intelligence. However, the drastic reduction in U.S. contributions, coupled with political opposition in Washington, has forced the UN to reassess its structure and efficiency.
In response, the UN launched an internal review called UN80, led by Under-Secretary-General Guy Ryder, aiming to streamline operations and reduce overlapping mandates across its more than 140 entities. Previous reform efforts have often stalled due to bureaucratic resistance, but the current funding crisis has prompted renewed urgency. An interim update highlighted inefficiencies caused by expanding mandates, overlapping responsibilities, and outdated working methods. UN agencies are being asked to justify their existence, clarify mandates, and align with the organization’s core pillars of peace and security, human rights, and development.
Proposed reforms include consolidating administrative functions, relocating certain operations from high-cost duty stations, and creating centralized payroll systems. Some agencies and staff may be merged or reduced, while others will be adjusted to improve effectiveness. Notably, questions have arisen regarding overlaps between agencies like UNHCR and the International Organization for Migration, or UNAids and the World Health Organization.
The impact of U.S. withdrawal from multilateral funding is already evident. The U.S. has scaled back contributions to key programs such as the Human Rights Council, UNFPA, WHO, and Unesco, and significant reductions are expected in peacekeeping and humanitarian budgets in 2026. The World Food Programme, UNHCR, and UNICEF have already reported serious shortfalls, affecting millions of people worldwide. For instance, WFP can now only reach one-third of the 3 million Afghans in need, and 11 million refugees risk losing critical support from UNHCR.
UN officials, including Tom Fletcher from the Office for the Coordination of Humanitarian Affairs, warn that the crisis is symptomatic of broader challenges to the UN’s legitimacy and global influence. The organization must navigate not only a funding shortfall but also increasing political pressures and skepticism about its effectiveness. The current situation underscores the fragility of the UN system and the urgent need for reforms to maintain its ability to deliver essential services to vulnerable populations worldwide.
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