• 20 May, 2025
• FAITH MIMDOO KEGH
• No comment

UN Freezes Hiring, Cuts Spending Amid Growing Financial Crisis

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# **UN Freezes Hiring, Cuts Spending Amid Growing Financial Crisis**

**By Vanguard News Reporter**
**Published: May 20, 2025**

**Global organization warns that delayed contributions threaten vital operations.**

The United Nations has announced significant cutbacks—including a hiring freeze, reduced spending, and scaled-down services—as it faces a worsening financial crisis due to delayed member contributions.

During a meeting of the General Assembly’s Fifth Committee on Monday, officials warned that the mounting shortfall in payments is severely impacting the UN’s ability to fulfill its global mandates.

As of mid-May, member states owe the UN \$2.4 billion in regular budget dues and an additional \$2.7 billion in peacekeeping funds. Delegates emphasized that this financial gap jeopardizes the organization’s credibility and operational capacity.

Representing both Switzerland and Liechtenstein, a delegate stated:

> “Each delay in payment, each hiring freeze, and every cancelled service erodes trust in our ability to deliver.”

One proposed solution discussed was to allow the UN to retain unspent funds at the end of each fiscal year rather than returning them to member states. Under current rules, these funds must be refunded, even if received late, leaving little time for use.

Delegates also supported early use of “special commitments”—emergency funding mechanisms—to help bridge funding gaps at the start of the year.

However, countries like Norway, Kazakhstan, and the UK stressed that such temporary measures won’t resolve the root cause: the chronic late or non-payment of dues.

The European Union highlighted the real operational risks involved, arguing that financial responsibility must be shared fairly among all member states, not just those who pay on time.

Singapore, speaking on behalf of the ASEAN group, described the UN’s liquidity problems as increasingly routine. It cited the example of the UN’s Economic and Social Commission for Asia and the Pacific (ESCAP), which had to close offices for three months and suspend both travel and recruitment.

A major concern raised was that one country—widely understood to be the United States—is responsible for more than half of all unpaid contributions. Reports suggest that the U.S. under former President Donald Trump withheld funding for political reasons.

Russia called for more transparency in the implementation of austerity measures, urging the UN not to make major decisions without input from member states.

Catherine Pollard, the UN’s Under-Secretary-General for Management, reported that only a few countries had paid all their dues across various budget lines by May 9. By May 19, only 61 member states had fully met their financial obligations to the organization.

The overall message from Monday’s meeting was clear: unless broad and timely financial support is restored, the UN’s capacity to serve the global community—especially during crises—will be significantly undermined.

FAITH MIMDOO KEGH

Manager – Oversees the daily operations, editorial planning, and strategic direction of the platform. A graduate with a solid academic foundation in media and communication, Faith brings a wealth of experience to the TokinPoint.

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