UN prepping for spending cuts as DOGE roots out waste in US, internal docs show

UN Memo Reveals Preparations for Potential U.S. Funding Cuts and Financial Challenges

An internal memo obtained by Fox News Digital highlights that the United Nations (UN) is gearing up for possible funding cuts from the United States. The memo, titled "Managing the 2025 regular budget liquidity crisis," was sent to department heads by UN Secretary-General António Guterres. It directs them to manage cash flow conservatively, suspend hiring, and prepare to operate with only 80% of their allocated budgets. While the memo acknowledges that this reduction could pose challenges, especially for non-discretionary spending, it emphasizes the necessity due to liquidity constraints.

Secretary-General Guterres Addresses the Financial Situation and Morale

Secretary-General Guterres has taken steps to communicate with UN staff, including a virtual town hall invitation to discuss the organization’s financial situation. His spokesperson, Stéphane Dujarric, confirmed the memo’s authenticity but downplayed its urgency, stating it is part of regular financial planning. Guterres also sent a letter to staff in February, reassuring them of the UN’s importance and the need for dedication to navigate the challenges ahead, emphasizing that the organization’s work is more crucial than ever.

Insider Reactions to the Memo and Hiring Freeze

Insiders within the UN have expressed mixed reactions to the memo. While some were surprised by the hiring freeze, many do not anticipate significant budget cuts. There is skepticism about the severity of the financial situation, with some viewing the memo as a precautionary measure rather than a sign of imminent crisis. Despite this, the memo’s emphasis on financial prudence indicates a proactive approach to potential funding reductions.

Former Officials Highlight Inefficiencies and Launch "DOGE-UN" Initiative

Hugh Dugan, a former high-level UN official, along with others, plans to launch an initiative called "DOGE-UN" to shed light on inefficiencies within the organization. Dugan points out that the UN’s assumption of leveraging its global influence to secure U.S. funding may no longer hold, as the U.S. administration, under President Trump, has identified significant wasteful spending through the Department of Government Efficiency (DOGE). This could lead to further financial strain if other major funders also reassess their contributions.

Historical Context of UN’s Financial Struggles

The UN has historically faced liquidity challenges, with many member states failing to pay their dues in full or on time. Dujarric noted that the memo is not a direct response to U.S. politics but part of ongoing financial management. However, the timing coincides with increased scrutiny from the U.S., particularly after President Trump highlighted instances of waste identified by DOGE, raising concerns about future funding.

The Road Ahead for the UN Amid Financial Uncertainty

As the UN works to address potential funding cuts and inefficiencies, Secretary-General Guterres is focused on maintaining staff morale and ensuring the organization’s continued relevance. The upcoming virtual town hall aims to address these financial challenges transparently. While the UN has managed past crises, the current situation, compounded by external pressures, necessitates a careful and strategic approach to navigate the uncertain financial landscape ahead.