Note: Single-source report; awaiting corroboration.
The United Nations General Assembly has voted to discard a longstanding rule that required the organization to repay unspent funds to Member States even when such funds were never received, according to a UN report. The decision follows recommendations by the Assembly's Fifth Committee, responsible for administrative and budgetary matters, and introduces a four-year trial period in which reimbursements occur only when unspent funds are backed by actual cash.
UN Secretary-General António Guterres welcomed the change, indicating that previous financial rules risked the organization’s stability. He said the new approach will enable more predictable and responsible management of resources in regular and peacekeeping budgets and will improve delivery on Member States’ mandates.
Guterres described the reform as critical for the UN's operational continuity, especially for peacekeeping operations, and an important improvement for the next Secretary-General. The previous rule often required returning funds that were never actually received.
The UN reported record arrears totaling $1.6 billion in unpaid assessments for 2025, with overall arrears exceeding $6.5 billion across its regular budget, peacekeeping efforts, and two international tribunals. In response, the UN has implemented strict cash conservation measures to reduce expenditures. The Secretary-General has urged Member States to fulfill their payment obligations or consider significantly revising the organization’s financial regulations to avoid a collapse.
Prior financial rules, established 80 years ago, mandated refunds of unspent funds as credits against future assessments, regardless of whether underspending was due to late payments or unavailable funds. The issue was highlighted by General Assembly President Annalena Baerbock in a European Parliament address, describing the liquidity challenges as "existential" and advocating for proposals to reform reimbursement policies.