Reuters: US plans $725 million payment to United Nations

The Trump administration has notified the U.S. Congress of its intention to pay $725 million to the United Nations, potentially helping the organisation address billions of dollars in unpaid U.S. contributions, according to a congressional notification seen by Reuters.

The planned payment comes ahead of an expected speech by U.S. President Donald Trump at the U.N. General Assembly in New York next month.

A U.S. official said the payment would be contingent on continued reforms at the United Nations and that no funds had been transferred as of August 21.

The allocation was outlined in an August 4 State Department notification to Congress that had not previously been reported.

The Trump administration has criticised the United Nations for failing to meet its potential and has significantly reduced U.S. funding for U.N. agencies. Washington has also cut domestic and foreign aid as part of a broader effort to reduce federal spending and prioritise programmes it says serve U.S. taxpayer interests.

The proposed $725 million payment would amount to less than 20% of the more than $4 billion the United Nations said the United States owed as of May. The U.S. government has disputed that figure, saying its outstanding obligations are significantly lower and that it has already made some payments.

Under Article 19 of the U.N. Charter, countries can lose their voting rights in the General Assembly if their arrears exceed the amount due for two full years, although grace periods may be granted.

Ronny Patz, an expert on U.N. finance at German think tank IDOS, said a significant payment could help the organisation avoid immediate spending cuts.

"If they pay a big chunk, the U.N. still runs on zero reserves but it gets through the year," Patz said. “If they don’t pay, the U.N. might really be in trouble for the last two or three months of the year in terms of paying salaries and keeping the doors open.”

The United States is the largest contributor to the U.N. budget. However, under the Trump administration, Washington has withheld mandatory contributions to the organization’s regular and peacekeeping budgets while also sharply reducing voluntary funding for U.N. agencies.

By Sabina Mammadli