US intends to pay $725 million towards UN debt, Congressional document shows

The Trump administration has initiated a process to transfer $725 million to the United Nations, a congressional notification seen by Reuters shows. The payment, set to go through before President Trump's expected UN speech next month, would cover less than 20% of the over $4 billion the UN says it is owed by the US. Experts say the transfer would help pay UN salaries temporarily but may not avert a financial crisis.

The Trump administration has initiated a process to transfer $725 million to the United Nations, according to an August 4 State Department notification letter to Congress seen by Reuters. The payment is set to go through before President Donald Trump's expected speech to the UN General Assembly in New York next month. The $725 million would be less than 20% of the more than $4 billion the UN said in May it was owed by the United States, though Washington has said that total figure is much lower and that it has made some payments. UN Secretary-General Antonio Guterres said this year that the UN faced 'imminent financial collapse' due to unpaid contributions from member states, and the global body has brought in large budget cuts. Eugene Chen, a former UN official, told Reuters such a transfer would help pay UN salaries for a period, but might not cover them all. 'It keeps the ship afloat a little longer,' he said. 'If the US does not make further payments, it will likely lose its voting rights in January,' he added. Under Article 19 of the UN Charter, a member state loses its voting rights in the General Assembly if its arrears exceed two years in annual fees, although grace periods are possible. Ronny Patz, an expert in UN finance with German think tank IDOS, said a significant transfer now could avert the need for immediate spending cuts. 'If they pay a big chunk, the UN still runs on zero reserves but it gets through the year,' Patz added. The US is the biggest contributor to the UN budget, but under the Trump administration it has refused to make mandatory payments to regular and peacekeeping budgets, and has slashed voluntary funding to UN agencies. As of August 18, some 129 members had paid in full, a UN document showed. China, the number 2 contributor after Washington, was also absent from the list. The 80-year-old institution has been undergoing a decisive reform and cost-cutting exercise known as 'UN80' amid its financial crisis. It has already cut its 2026 budget by 9.2% and transferred over 2,000 jobs out of expensive cities like Geneva and New York to lower-cost hubs.