Summary: The U.S. plans to deliver an initial tranche of money to the United Nations in the coming weeks to address arrears, according to U.S. Ambassador to the U.N. Mike Waltz. He framed the forthcoming payment as a substantial down payment on annual dues while stressing Washingtons demand for continued institutional reforms within the 193-member organization.
In a telephone interview, Waltz said: "Youll certainly see an initial tranche of money very shortly. Itll be a significant ... down payment on our annual dues ... I dont believe that the ultimate figure is decided, but itll be in a matter of weeks." The comments came two weeks after U.N. Secretary-General Antonio Guterres warned of an "imminent financial collapse" for the organization because of unpaid fees, most of which are owed by the United States.
U.N. officials report that more than 95 percent of the funds outstanding against the regular U.N. budget are liabilities of the United States, amounting to $2.19 billion as of the start of February. In addition to that sum, the U.S. carries $2.4 billion in obligations for current and past peacekeeping missions and $43.6 million for U.N. tribunals.
On December 30, the U.N. General Assembly approved a $3.45 billion regular budget for 2026 after several weeks of negotiation. That budget finances the global network of U.N. offices, including the New York headquarters, and covers staff salaries, meetings and work on development and human rights.
Waltz placed the pending U.S. payment in the context of a broader push for change at the U.N. He said the United States supported Guterres UN80 reform package as an important early step but argued it did not go far enough. "It doesnt go far enough, but its an important step. I wish the secretary-general had made it in year one or two of his tenure, not year nine," Waltz said. He added that Washington was concentrating on returning the organization to core functions - particularly peace and security - and urged a focus on restoring the U.N. to what he called its full potential.
Waltz used a blunt formulation to describe the approach: "This is some tough love. The current model is unsustainable for a lot of countries, and were trying to get the UN back, fit for purpose and focused, and stop trying to do everything for everyone." He highlighted reducing duplication as a principal objective, citing as an example that seven U.N. agencies have climate change as their primary mission. "Now, regardless of the climate change debate, we dont need seven," he said. He also expressed support for consolidating logistics and back-office functions at humanitarian agencies.
Those calls for efficiency echo Guterres effort to cut costs and make the U.N. leaner. The regular 2026 budget ultimately approved is roughly $200 million higher than what Guterres proposed but is about 7 percent lower than the approved 2025 budget. Last month, Guterres warned the U.N. could exhaust its cash reserves by July and described what he said was a "Kafkaesque" rule that requires the organization to credit back hundreds of millions of dollars in unspent dues to member states annually even when those funds were never received.
Waltz told Reuters that member states should consider changing that rule. He also pointed to a statutory mismatch that has contributed to U.S. peacekeeping arrears, saying there is a disconnect between what the U.N. assesses and what U.S. law allows the government to pay. "Thatll be addressed the next time we negotiate our assessments, which I believe is next year," he said.
The U.S. arrears situation has intensified under President Donald Trump, as Washington has retreated from multilateral engagement on multiple fronts, according to the context provided in the conversation. Under the current administration, the U.S. has declined to make mandatory payments to the regular and peacekeeping budgets, substantially reduced voluntary contributions to U.N. agencies with separate budgets, and moved to withdraw from certain U.N. organizations, including the World Health Organization.
U.N. officials told Reuters that the United States did not contribute to the regular U.N. budget last year and that it now owes $827 million for that year, plus $767 million for 2026. In Congress, a recent spending bill signed into law by President Trump includes $3.1 billion for U.S. dues to the U.N. and other international organizations. When asked whether the funds Waltz referenced would be applied to last years arrears, the 2026 assessment, or both, Waltz said the payment would be made "just in general, towards the arrears, and also in recognition of some of the reforms that weve seen."
Guterres UN80 reforms have explicit aims to reduce overhead and improve delivery, but Waltz and the U.S. delegation are pressing for more aggressive consolidation and trimming of bureaucracy. He said the U.N. bureaucracy has become too large and must become "much more efficient and effective."
Key points
- The United States will make an initial payment toward its U.N. arrears within weeks, described by the U.S. ambassador as a significant down payment on annual dues.
- The U.S. is the largest single debtor to the regular U.N. budget, owing $2.19 billion by the start of February, plus $2.4 billion for peacekeeping and $43.6 million for tribunals.
- Washington is linking financial relief to continued reform at the U.N., advocating consolidation of functions and reductions in duplication to improve efficiency.
Risks and uncertainties
- Timing and total size of follow-on payments remain unsettled - Waltz said the ultimate figure had not been decided, creating uncertainty for U.N. cash flow planning. This affects U.N. administrative and programmatic operations globally.
- Differences between U.N. assessments and U.S. statutory payment rules contribute to ongoing peacekeeping arrears, introducing a legal and budgeting uncertainty for future U.S. payments tied to peace operations.
- The broader U.S. policy of reducing voluntary funding and withdrawing from certain agencies creates an unpredictable funding environment for U.N. programs, including development and humanitarian operations.
As the U.N. navigates tight finances and debates over structure and mission, the coming weeks will show whether the initial U.S. tranche eases immediate liquidity pressures and how quickly conversations on further reform and arrears resolution move forward.