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U.N. eyes budget and job cuts for 2026 as U.S. scales back aid
U.N. eyes budget and job cuts for 2026 as U.S. scales back aid

Japan Times

time2 days ago

  • Business
  • Japan Times

U.N. eyes budget and job cuts for 2026 as U.S. scales back aid

The United Nations Secretariat is preparing to cut its $3.7 billion budget by 20% and slash about 6,900 jobs, according to an internal memo. The directive, which asks staff to detail cuts by June 13, comes amid a financial crisis triggered in part by the United States, which annually funds nearly a quarter of the world body. In addition to U.S. foreign aid cuts under U.S President Donald Trump that have gutted U.N. humanitarian agencies, the U.S. owes — for arrears and the current fiscal year — nearly $1.5 billion. The memo's author, U.N. Controller Chandramouli Ramanathan, did not cite the U.S. failure to pay. He noted that the cuts are part of a review launched in March dubbed "UN80." "It is an ambitious effort to ensure that the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all," Ramanathan said. "I count on your cooperation for this collective effort whose aggressive timelines are recognized." The cuts would take effect Jan. 1, the start of the next budget cycle. In public briefings to U.N. diplomats this month, U.N. Secretary-General Antonio Guterres said he is considering a massive overhaul that would merge major departments and shift resources across the globe. He said the U.N. may consolidate some agencies, trim others, move staff to cheaper cities, cut duplication and eliminate redundant bureaucracy. In public briefings to U.N. diplomats this month, U.N. Secretary-General Antonio Guterres said he is considering a massive overhaul that would merge major departments and shift resources across the globe. | reuters "These are times of peril, but they are also times of profound opportunity and obligation," Guterres said on May 12. "Make no mistake: uncomfortable and difficult decisions lie ahead. It may be easier and even tempting to ignore them or kick the can down the roads. But that road is a dead end." The U.S. failure to pay its assessments has also created a liquidity crisis for the U.N., a problem exacerbated by China's repeated late payments. Together, the two nations account for more than 40% of U.N. funding. In addition, the Trump administration has withdrawn hundreds of millions of dollars in discretionary funds, forcing the abrupt halt of dozens of humanitarian programs that U.N. officials have said will cost lives. The proposed U.S. budget for the coming year, which must be approved by Congress, has eliminated or drastically reduced funding for several U.N. programs, including peacekeeping. A U.S. State Department spokesperson did not comment on the proposed U.N. cuts, but said a Trump-ordered study was due by early August. "Funding for the U.N., along with other international organizations, is currently under review,' the spokesperson said. In April, Tom Fletcher, who leads the United Nations Office for the Coordination of Humanitarian Affairs, told employees that U.S. funding cuts would force the agency to trim 20% of its staff to address a shortfall of $58 million. Richard Gowan, U.N. director at the International Crisis Group, said it was unclear if the cuts will affect the Trump administration position. "Diplomats think that Guterres hopes that if he shows he will make these cuts, then the administration will ease off on their threats to zero out funding for the U.N.,' Gowan said. "That's possible. It's also possible that the administration will just pocket the cuts and not make any concessions.'

UN plans 20% budget cut amid liquidity crisis, internal memo says
UN plans 20% budget cut amid liquidity crisis, internal memo says

The National

time3 days ago

  • Business
  • The National

UN plans 20% budget cut amid liquidity crisis, internal memo says

The UN is preparing to slash its $3.7 billion budget by 20 per cent in 2026, according to an internal memo. The order, seen by The National, requires staff to outline reductions by June 13 and could result in thousands of jobs lost. UN Controller Chandramouli Ramanathan said the cuts are part of the UN80 reform initiative launched in March to ensure the world body becomes "more cost-effective" by taking "bold and immediate steps" to improve the way it functions. "It is an ambitious effort to ensure that the United Nations is fit for purpose to support 21st-century multilateralism, reduce human suffering and build better lives and futures for all," Mr Ramanathan said, urging staff co-operation amid "aggressive timelines". "Downgrading of posts and positions may also be proposed to reduce the posts costs." The cutbacks will take effect on January 1, the start of the next budget cycle. On May 13, UN Secretary General Antonio Guterres told member states at an informal meeting that the world body's liquidity crisis stems largely from unpaid membership dues. 'The liquidity crisis is caused by one simple fact: the arrears. We have a huge debt to the organisation, essentially from one member state and a few others,' Mr Guterres said. 'We won't solve the liquidity crisis by reforming the organisation. We solve it by countries paying their contributions in full and on time." Mr Guterres added that this would improve the UN's efficiency and mitigate the crisis. In April, Tom Fletcher, the head of UN humanitarian affairs, informed staff that due to US funding reductions, the agency would need to cut 20 per cent of its workforce to cover a $58 million budget gap. The US owes the world body about $2.8 billion as of early 2025, according to UN figures. The total includes about $1.5 billion in unpaid assessments for the UN's regular budget and about $1.3 billion for peacekeeping operations and international tribunals. Under the UN's funding formula, the US is responsible for 22 per cent of the regular budget and about 27 per cent of peacekeeping costs.

UN scales back aid goals in Yemen and Somalia
UN scales back aid goals in Yemen and Somalia

Jordan Times

time17-05-2025

  • Politics
  • Jordan Times

UN scales back aid goals in Yemen and Somalia

UNITED NATIONS, UNITES STATES — The United Nations announced Friday it is scaling back its humanitarian aid goals in Yemen and Somalia in the latest fallout from a drastic drop in funding from member states. It said the cuts are putting millions of lives at risk around the world. In January the UN launched an appeal for $2.4 billion to help 10.5 million people in war-torn Yemen this year, far below the 19.5 million people it deems as being in need of assistance. But with funding down, the global body and its humanitarian aid partners established new priorities so as to be able to help at least the neediest people there. The UN announced similar changes in strategy in Ukraine and Democratic Republic of Congo in recent weeks. Now the focus in Yemen will be on 8.8 million people with a forecast budget of $1.4 billion, said Stephanie Tremblay, a spokeswoman for UN Secretary-General Antonio Guterres. In violent and unstable Somalia, an initial $1.4 billion plan to help 4.6 million people has also been trimmed back to $367 million for 1.3 million people, she said. "This does not mean that there's been a reduction in overall humanitarian needs and requirements," Tremblay said. She said huge funding cuts are forcing humanitarian aid programs to scale back, "putting millions of lives at risk across the world." "As in other crises, the consequence will be dire. If we fail to deliver, millions more people will be acutely hungry and lack access to clean water, education, protection and other essential services," she added. UN agencies are scaling back operations and staffing around the world as they grapple with big cuts in contributions from member states, in particular the United States under President Donald Trump.

UN chief pleads with countries to pay their share for peacekeeping, points to financial problems
UN chief pleads with countries to pay their share for peacekeeping, points to financial problems

Associated Press

time13-05-2025

  • Business
  • Associated Press

UN chief pleads with countries to pay their share for peacekeeping, points to financial problems

BERLIN (AP) — U.N. Secretary-General António Guterres told countries that the world body's peacekeeping operation is 'only as strong as member states' commitment to it' as he pleaded with them Tuesday to pay their share. The United Nations' peackeeping department currently leads 11 operations, in countries including Congo, the Central African Republic, South Sudan, Lebanon, Cyprus and Kosovo. The budget for nine of those operations during the fiscal year that ends on June 30 totals $5.6 million, 8.2% lower than a year earlier. Each of the U.N.'s 193 member countries is legally obliged to pay its share toward peacekeeping. Guterres argued that, with a budget 'representing a tiny fraction of global military spending — around one half of one per cent — U.N. Peacekeeping remains one of the most effective and cost-effective tools to build international peace and security.' 'But it's only as strong as member states' commitment to it,' he added at the opening of a two-day, German-hosted conference of ministers to discuss the future of peacekeeping. 'Unfortunately, peacekeeping operations have been facing serious liquidity problems. It is absolutely essential that all member states respect their financial obligations, paying their contributions in full and on time.' Guterres didn't offer details of the problems, but acknowledged that 'these are tough times for the financing of our work across the board.' More broadly, the U.N. has been scrambling to respond to funding cuts for aid operations from its biggest donor, the United States, under President Donald Trump's administration. German Foreign Minister Johann Wadephul said that his country, like many others, 'is prepared to pledge additional resources' for peacekeeping. But he said there should also be an effort to make missions 'more efficient and more focused' through clearer mandates, cutting back on bureaucracy and avoiding duplication.

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