United Nations Revises 2026 Budget, Adds Reform Measures

A view of the UN Headquarters, in New York.

The United Nations has finalised the revised estimates for its 2026 proposed programme budget, outlining more than $500 million in reductions while also introducing the first measures of the UN80 Initiative – a broader effort to make the Organisation more effective and resilient as it marks its 80th anniversary.

The revised estimates, communicated on Monday to the Advisory Committee on Administrative and Budgetary Questions (ACABQ), propose reductions of 15.1 per cent of resources and 18.8 per cent of posts in the regular budget compared with 2025. The support account for peacekeeping operations – which funds the staff and services that backstop UN missions worldwide – will also face reductions in the 2025/26 period.

The ACABQ, a subsidiary organ advising the General Assembly, will review the proposals before forwarding its recommendations to the General Assembly’s Fifth Committee, where all 193 Member States decide on administrative and budget matters.

In a letter to Member States, Secretary-General António Guterres said the reductions followed an extensive review of how mandates are delivered and resources allocated. While ensuring balance among the three pillars of the UN Charter – peace and security, human rights and sustainable development – Secretariat entities examined how to improve delivery and optimise the use of resources. Mr Guterres stressed that the reductions were carefully calibrated and targeted, not across the board.

Programmes and activities directly supporting Member States, particularly least developed, landlocked and small island developing States, as well as advocacy for Africa’s development, were shielded from reductions. Support for the Peacebuilding Fund and the Resident Coordinator system was maintained. Regional economic commissions will face smaller adjustments, while the Regular Programme for Technical Cooperation will continue to grow, strengthening capacity-building support for developing countries.

“Reductions of this magnitude will entail trade-offs. Entities have identified likely impacts on deliverables – such as narrowed scope, adjusted timelines or reduced frequency. We will also take mitigation measures to protect core mandates and service quality, including by prioritising high-impact outputs, pooling expertise across entities and relying on virtual modalities and automation,” the Secretary-General wrote.

The UN today operates in a world of growing political and financial uncertainty. In this challenging environment, the UN80 Initiative aims to create a stronger, more effective United Nations. The revised estimates reflect this ambition and include proposals to improve how the Organisation operates.

Alongside the reductions, the revised estimates introduce the first set of proposals for the UN Secretariat under Workstream 1 of the UN80 Initiative, focused on management and operations. Measures include creating new administrative hubs in New York and Bangkok, consolidating payroll into a single global team across New York, Entebbe and Nairobi, and relocating some functions from high-cost duty stations such as New York and Geneva to lower-cost locations.

Further savings are planned through real estate. The Organisation will vacate two leased buildings in New York by 2027, with annual savings projected from 2028. Collectively, these measures aim to reduce duplication, improve quality and safeguard mandate delivery, while meeting Member States’ calls for greater efficiency.

Launched in March 2025, the initiative is built around three workstreams:

Workstream 1: Efficiencies and management improvements, now reflected for the first time in these revised estimates, with additional proposals to follow.

Workstream 2: The Mandate Implementation Review, with a report presented in August now under consideration by a newly established Informal Ad Hoc Working Group, which meets on 16 September.

Workstream 3: Exploring possible structural and programmatic realignments through system-wide clusters, with initial proposals expected to be presented later this week.

Together, the three workstreams mark a significant reorientation of how the UN operates, aimed at ensuring the Organisation remains effective, credible and sustainable, the Secretary-General has said.

The revised estimates will first be reviewed by the ACABQ, which is expected to hold hearings starting this week. The proposals will then go to the General Assembly’s Fifth Committee, where all 193 Member States negotiate and decide on administrative and budget matters. A decision is expected by December.

If adopted, the changes would begin taking effect in 2026 with phased implementation. Further changes resulting from the various workstreams will be reflected in future budget submissions.

In a letter to UN staff, Mr Guterres acknowledged that the changes would affect their daily work and professional lives but assured them they would not face them alone. “You will be fully engaged and supported throughout the process,” he said, pledging regular communication, opportunities for consultation, and practical guidance at every stage.

The Secretary-General admitted that the choices involved in the revised budget had been difficult. He said accountability for the decisions began with him as Secretary-General but also extended to managers and staff across the Organisation. He underlined that the changes must be carried out with fairness, empathy and professionalism, and that everyone has a role to play in upholding UN values as the process moves forward.