Internal documents reveal the UN is preparing for potential funding reductions from the U.S. amid efforts to eliminate waste.
A memo, addressed to department heads and titled “Managing the 2025 regular budget liquidity crisis,” indicates Secretary-General António Guterres has directed “conservative” cashflow management and a hiring freeze. The memo also advises departments to prepare for potential budget cuts of up to 20%.
The memo acknowledges that reducing budgets to 80% of allocated funds could create challenges for covering essential expenses. However, it cites “lack of overall liquidity” as the reason for the constraint.
A UN spokesperson confirmed the authenticity of the memo, stating that such communications are “not unusual.”
Despite the memo’s warning about potential harm from budget cuts, sources suggest to Hugh Dugan, former Principal Deputy Special Presidential Envoy for Hostage Affairs, that the reductions may not be substantial. These sources also expressed surprise at the hiring freeze, but are skeptical about its implementation.
In addition to the memo, Secretary-General Guterres has invited all secretariat personnel to a virtual town hall later this month. While the invitation lacked a specific topic, the UN spokesperson confirmed that “the secretary-general will address the financial situation of the U.N.”
Dugan believes the delayed timing of the town hall and the lack of a stated topic indicate a lack of urgency regarding the financial situation.
Dugan suggests the UN’s traditional methods of resolving financial issues may no longer be viable. He also argues that the UN’s assumption that its global influence can be used as leverage in negotiations with the U.S. has become “preposterous.”
The UN’s concerns may stem from President Donald Trump’s address to Congress, where he highlighted “appalling waste” identified by DOGE. The possibility of other major donor countries reassessing their contributions also contributes to the concern.
The UN spokesperson denied any direct link between the memo and the U.S. political climate, stating that the UN has “faced a liquidity crisis” for decades due to member states’ incomplete or delayed payments.
The memo follows a letter sent to staff a month prior by Secretary-General Guterres, reassuring them that the UN is working to mitigate the impact of potential budget cuts and emphasizing the importance of the organization.
“Now, more than ever, the work of the United Nations is crucial. As we face this difficult challenge, your dedication and support will help us to overcome and move forward,” Guterres’ February letter stated.
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