United Nations to cut 20% jobs amid funding shortfall - What US contributes and how UN budget works?— EXPLAINED

Mint

a day ago

Over 60 offices, agencies, and operations of the United Nations have been asked to submit proposals by mid-June to reduce their staff by 20%. This initiative is part of a significant reform effort aimed at consolidating operations due to a severe funding shortfall, AP reported.
The UN Secretary General, Antonio Guterres, highlighted that the proposed job cuts are a result of diminishing UN resources over the past seven years, as several member countries either fail to pay their annual dues or do not pay them on time.
A funding shortfall is compelling the UN to reduce expenditure and freeze recruitment, affecting its capacity to implement mandated programmes and exposing the it to increasing 'reputational risk,' the fifth committee (Administrative and Budgetary) of UN discussed on May 19, 2025, while exploring the possible solutions as well.
Guterres also denied any connection between the job cuts and the withdrawal of foreign aid and other programmes by US President Donald Trump.
Notably, the proposal to reduce the workforce comes after President Trump announced funding cuts to the global organisation.
After entering the White House for the second time, Trump issued an executive order seeking a general review of all US contributions to the UN. Following this, the administration announced it would not resume funding for UNRWA.
Additionally, Trump issued an executive order halting most US foreign aid for ninety days and also announced withdrawal from the WHO, stating it 'continues to demand unfairly onerous payments from the United States.'
The US was expected to pay 22% of the regular budget of the UN. In 2024, of the 193 member countries, 152 paid their dues in full, including China, while 41 countries, including the United States, did not.
Since its founding in 1945, the US has remained the largest contributor to the UN. In 2023, the US contributed almost $13 billion, making up over a quarter of the total funding for the collective budget of the global body, according to the latest available data on the UN Chief System Executives Board for Coordination. Nearly 24 per cent of this total was assessed, 75 per cent was voluntary, while the rest came from other activities.
According to the UN Charter, all 193 member states of the United Nations must make payments to specific sections of the organization as a requirement for membership. This amount, paid annually, is known as the assessed contribution, which differs across countries based on a formula that considers gross national income, debt burden, and population and other factors.
These payments fund the regular budget of the UN, covering the administrative costs and expenses of core activities such as special political missions and peacekeeping operations.
In addition to these mandatory payments, countries can also make voluntary contributions. Several UN organisations, including the United Nations Children's Fund (UNICEF), the Office of the United Nations High Commissioner for Refugees (UNHCR), and the World Food Programme (WFP), primarily depend on these contributions, which are viewed as discretionary funding.
The job cuts include nearly 14,000 posts under the regular budget or 2,800 posts, AP quoted UN spokesman Stephane Dujarric.
This includes staff in the UN political and humanitarian offices, along with its agencies that assist refugees, promote gender equality, and address issues related to international trade, the environment, and urban development. UNRWA, the agency supporting Palestinian refugees is also included.
Multiple UN agencies were preparing to reduce their workforce or implement other cost-cutting measures. Officials have highlighted funding cuts primarily from the United States, cautioning that essential relief programs will be significantly impacted as a consequence.
The World Food Programme (WFP) may reduce its workforce by up to 30%, while the head of the United Nations High Commissioner for Refugees (UNHCR) informed of plans to cut costs by 30% and reduce senior-level positions by 50%, according to internal memos obtained by the AP.
In addition to WFP and UNHCR, United Nations Children's Fund (UNICEF) and United Nations Office for the Coordination of Humanitarian Affairs (OCHA) are expected to make cuts, the report said.