The United Nations General Assembly approved a change Tuesday to a rule that had forced the organization to refund hundreds of millions of dollars in unspent money to member states that had not paid their assessed contributions. The adjustment limits refunds for four years to countries that met their financial obligations, temporarily relieving a liquidity crisis that Secretary-General António Guterres had warned could threaten the organization’s operations.
The previous arrangement required the U.N. to credit member states for unspent funds using a formula based on each nation’s obligated contribution rate. The United States is responsible for 22% of the U.N. budget, and China for roughly 20%. That structure meant that even when the U.S. contributed nothing to the budget, it would be credited with 22% of the U.N.’s unspent funds. China paid so late in some years that its money could not be spent, also generating credits.
The change primarily affects the two largest contributors to the U.N. budget, which are also the largest debtors. The United States owes the organization about $4 billion amid the Trump administration’s displeasure with the world body. China is behind on obligations exceeding $400 million.
The U.N. said the adjustment produced $900 million in savings for peacekeeping operations and $400 million for the organization’s regular budget. Guterres welcomed the rule change, the U.N. said. U.S. officials did not immediately respond to a request for comment.
Despite the adjustment, the U.N. said the agreement does not resolve what it called the “underlying problem” of member states not paying or paying late. The organization said the rule change addresses the immediate cash shortage but does not guarantee that member states will meet their financial obligations on time in the future.