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UN Cash Crunch Forces Cuts as Reform Drive and New Funding Models Gain Urgency

Donor pullbacks combined with a ban on borrowing are forcing drastic UN cutbacks.

Overview

  • The UN’s humanitarian appeal was reduced from $44 billion to $29 billion, with only $5.6 billion—about 13%—raised by mid-2025.
  • Agencies are slashing staff and programs, including a 30% workforce cut at the World Food Programme and 3,500 positions eliminated at UNHCR, with service losses reported in Sudan.
  • Secretary-General António Guterres’ UN80 plan advances consolidation of agencies, staff reductions, and shifts of operations from costly hubs such as New York and Geneva.
  • Funding strains reflect major donor retrenchment, with a U.S. pullback leaving about $1.5 billion unpaid, China extending payment delays, and more than 40 states owing over $750 million in dues.
  • Debate is intensifying over alternative financing—private partnerships, blended finance, crypto-enabled transfers, regional roles, and potential global levies—amid warnings about agenda capture and fragmented multilateralism.