UN Braces for Budget Cuts as DOGE Targets Waste: Internal Memo Reveals Spending Freeze

The United Nations is bracing for significant budget cuts as the U.S. Department of Government Efficiency (DOGE) intensifies its efforts to root out waste. An internal memo obtained by Fox News Digital reveals that UN Secretary-General António Guterres has directed department heads to prepare for a liquidity crisis by operating with just 80% of their allocated budgets. The memo also announces a hiring freeze and warns of potential challenges in meeting non-discretionary spending.

The Memo: A Call for Austerity

The memo, titled “Managing the 2025 Regular Budget Liquidity Crisis,” was sent to heads of various UN departments and offices. It outlines the need for conservative cashflow management and suspends hiring across the organization. “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 states.

Stéphane Dujarric, spokesperson for Secretary-General Guterres, confirmed the memo’s authenticity but downplayed its significance, calling it “not unusual.” However, insiders familiar with the UN’s financial operations expressed surprise at the hiring freeze, though they remain skeptical about its enforcement.

DOGE’s Role in UN Budget Cuts

The memo comes amid growing pressure from the U.S. Department of Government Efficiency (DOGE), which has identified numerous instances of “appalling waste” within international organizations, including the UN. President Donald Trump highlighted these findings in a recent address to Congress, signaling potential cuts to U.S. funding for the UN.

Hugh Dugan, former Principal Deputy Special Presidential Envoy for Hostage Affairs, told Fox News Digital that the UN’s assumption of using its global influence as leverage in negotiations with the U.S. has proven “preposterous.” He added that the UN may have exhausted its traditional methods of bailing itself out of financial crises.

A Virtual Town Hall: Addressing the Crisis

In addition to the memo, Secretary-General Guterres has invited all secretariat personnel to a virtual town hall later this month. While the invitation did not specify a topic, Dujarric confirmed that Guterres will address the UN’s financial situation. Dugan criticized the timing of the town hall, stating that the lack of urgency reflects a disconnect between leadership and the gravity of the situation.

A History of Liquidity Challenges

Dujarric emphasized that the UN has faced liquidity crises for decades, citing delayed or incomplete payments from member states as a recurring issue. He denied that the memo was a direct response to U.S. political developments but acknowledged the potential impact of DOGE’s findings on the UN’s financial outlook.

Guterres’ Reassurance to Staff

The memo follows a letter sent by Guterres to UN staff in February, reassuring them that the organization is working to mitigate the impact of possible budget cuts. “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 wrote.

What’s Next for the UN?

As the UN prepares for potential budget cuts, the organization faces a critical juncture. The hiring freeze and spending reductions could strain its ability to carry out its global missions, from peacekeeping to humanitarian aid. Meanwhile, DOGE’s efforts to root out waste may prompt other major funders to reassess their contributions, further complicating the UN’s financial stability.

For now, the UN remains focused on navigating this liquidity crisis, but the road ahead is fraught with challenges. As Guterres and his team work to address these issues, the world will be watching to see how one of the most influential international organizations adapts to a new era of fiscal scrutiny.

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