An internal United Nations memo obtained by Fox News Digital shows that the organization is trying to brace itself for U.S. funding cuts as the Department of Government Efficiency (DOGE) works to root out waste.
The memo was sent to heads of various departments and offices with the subject line ‘Managing the 2025 regular budget liquidity crisis.’ According to the memo, U.N. Secretary-General António Guterres issued a directive to manage cashflow ‘conservatively’ and to suspend hiring. It also contained a warning to the department heads, telling them to prepare to work with 80% of their allocated budgets.
‘We are aware that the 80% ceiling could pose significant challenges for many entities to meet some of their non-discretionary spending for non-post costs. However, we are constrained by the lack of overall liquidity,’ the memo reads.
Secretary-General Guterres’ spokesperson Stéphane Dujarric confirmed to Fox News Digital that this memo was sent out and said that it was ‘not unusual.’
Despite the U.N. memo stating that cutting back to 80% of allocated funds would potentially harm entities, insiders tell former Principal Deputy Special Presidential Envoy for Hostage Affairs Hugh Dugan that they do not see any ‘real cuts’ in it. Insiders were allegedly surprised by the personnel freeze, though they doubt there will be any concrete pause to hiring.
In addition to the memo, Secretary-General Guterres sent an invitation to all secretariat personnel to participate in a virtual town hall later this month. The invitation did not state an official topic for the town hall, but Dujarric confirmed to Fox News Digital that ‘the secretary-general will address the financial situation of the U.N.’
Dugan told Fox News Digital that the town hall invitation’s lack of a topic and the event’s late date show that ‘the urgency is not present enough at all.’
While the U.N. has been able to get by on its assumption that it could find ways to bail itself out, it may have exhausted those methods, according to Dugan. Additionally, Dugan said the U.N.’s assumption that it can use its power on the world stage as leverage in negotiations with the U.S. has proven to be ‘preposterous’ in recent years.
The U.N. may very well have a reason to worry after President Donald Trump’s address to a joint session of Congress in which he listed numerous examples of ‘appalling waste’ identified by DOGE. However, the possibility of other countries that provide major funding to the international body reassessing their spending as well could be causing further concern.
However, Dujarric denied the memo was a ‘direct result of the political situation in the U.S.’ and that the U.N. has ‘faced a liquidity crisis’ for decades, as ‘not all member states pay in full’ or ‘on time.’
The memo comes just about a month after Secretary-General Guterres sent a letter to staff reassuring them that the U.N. was working to mitigate the impact of possible budget cuts. He also doubled down on the importance of the international body and seemed to include a message to boost morale.
‘Now, more than ever, the work of the United Nations is crucial. As we face this difficult challenge, your dedication and support will help us to overcome and move forward,’ Guterres’ February letter read.
