US plans $725 million payment towards its large UN debt
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The Trump administration has started the process to transfer $725 million to the United Nations, according to a congressional notification seen by Reuters. The payment, set to go through before President Donald Trump's expected speech to the UN General Assembly next month, represents less than 20% of the more than $4 billion the UN says it is owed by Washington. The move could stave off immediate spending cuts, experts said, even as the US remains the UN's biggest contributor and has refused other mandatory payments.
Key Facts
- The $725 million payment is set to go through before President Donald Trump's expected speech to the UN General Assembly in New York next month.
- The UN said in May it was owed more than $4 billion by the United States, though Washington says the total is much lower.
- 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.
- The US is the biggest contributor to the UN budget, ahead of China, but has refused mandatory payments to regular and peacekeeping budgets under the Trump administration.
Payment Details
The Trump administration has started the process to transfer $725 million to the United Nations, according to a congressional notification seen by Reuters. The money is mentioned in an August 4 State Department notification letter to Congress that has not been previously reported. The payment is set to go through before an expected speech by US President Donald Trump to the UN General Assembly in New York next month. There was no immediate response from Washington to questions about the reasons for the payment from an administration which has slashed funding to many UN agencies.
Financial Impact
UN Secretary-General Antonio Guterres said this year that the UN faced "imminent financial collapse" due to unpaid contributions from member states. The $725 million would be less than 20% of the more than $4 billion that the UN said in May it was owed by the United States. 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," Chen said, adding that if the US does not make further payments it will likely lose its voting rights in January. A significant transfer now could avert the need for immediate spending cuts, said Ronny Patz, an expert in UN finance with German think tank IDOS.
US-UN Relations
The US is the biggest contributor to the UN budget, ahead of China, but under the Trump administration it has refused to make mandatory payments to regular and peacekeeping budgets. Washington has also slashed voluntary funding to UN agencies with their own budgets and withdrawn from dozens of UN and other international agencies. 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.
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US plans $725 million payment towards its large UN debt
