U.S. Dues and Contributions to the United Nations

There are two sources of funding for the UN and its agencies:

• Assessed contributions that finance the UN’s regular budget, peacekeeping operations, and specialized agencies like the International Atomic Energy Agency (IAEA); and
• Voluntary contributions to funds and programs such as the UN Children’s Fund (UNICEF) as well as subsidiary organizations of the UN.

Assessed Contributions

Assessed contributions are payments made as part of the obligations that nations undertake when signing treaties. Assessed contributions are vital as they are the primary source of reliable funding for UN core activities, such as peacekeeping. For example, the U.S. is assessed 22 percent of the UN’s regular budget and 27 percent of the UN’s peacekeeping operations budget. However, an outdated Congressional mandate caps U.S. expenditures at 25 percent of the UN’s peacekeeping budget.

Paying Our Dues: UN Regular Budget

The UN’s regular budget finances the General Assembly, the Security Council, the Economic and Social Council, the International Court of Justice, and the Secretariat. It also finances the UN’s special political missions, the largest of which are the UN Assistance Mission in Afghanistan (UNAMA) and the United Na Assistance Mission in Iraq (UNAMI).

The current payment structure for UN regular budget dues sets maximum and minimum rates for all nations. The maximum “ceiling” rate is 22 percent. The minimum “floor” rate for poorer countries is 0.001 percent. The U.S. pays the maximum rate and has negotiated several reductions in this rate over time, the most notably from 25 percent to 22 percent. The assessment rate is primarily determined by per capita income, of which the U.S. has one of the highest in the world.

The U.S. assessed contribution to the UN’s regular budget is included, along with 43 other UN-system, regional, and non-UN organizations, in the State Department’s Contributions to International Organizations (CIO) account. Since the 1980s, the U.S. has deferred payments to international organizations through this account by withholding dues payments by at least nine months—into the next fiscal year. The fiscal year for international organizations begins on January 1, but the U.S. does not provide payment until October 1 or when the foreign operations appropriations bills pass. This delay leaves the U.S. chronically behind and requires international organizations to take fiscally undesirable measures to meet their payroll and other obligations, including extensive internal and external borrowing.

Paying Our Dues: UN Peacekeeping Budget

Although the UN’s peacekeeping budget is separate from the regular budget it is also financed by assessments to member states. The UN’s peacekeeping assessment formula mirrors the regular budget rate structure but gives greater discounts to poorer nations. The resulting funding deficit is compensated for by the five permanent members of the Security Council, the U.S., the United Kingdom, France, Russia, and China. Each of these five has
unique voting and veto rights at the Security Council to authorize or suspend any peacekeeping operation. While the permanent members of the Security Council pay a slightly higher rate, the vast majority of UN peacekeepers come from developing countries such as: Pakistan; Bangladesh; Nepal; and Ghana.

The U.S. assessed contributions to the UN’s peacekeeping operations are funded through the State Department’s Contributions to International Peacekeeping Activities (CIPA) account. For any mission, which must be approved by the U.S. in the Security Council, other countries pay almost 75% of the costs.

Current Funding Levels for UN Regular & Peacekeeping Budget

Last year, Congress returned the U.S. to good financial standing at the UN and honored its obligations by fully funding the regular and peacekeeping budgets. In addition, the U.S. paid its arrears to the UN.

In the coming year, we ask that Congress maintain its support. Full funding for the UN ensures it can carry out its vital humanitarian, peacekeeping, democracy-building, and development work, all of which serves U.S foreign policy interests. As the U.S. is the UN’s largest contributor, Congressional funding shortfalls significantly impact the UN’s ability to carry out its operations. It is critical that Congress fully meet its commitments to the UN regular and peacekeeping budgets.

Below is a chart detailing FY 2010 funding levels, along with the proposed FY 2011 budget request. We ask that Congress fully support the President’s request throughout the budgeting and appropriations processes.

Voluntary Contributions

Voluntary contributions are, as the name implies, voluntary rather than assessed payments left to the discretion of each individual Member State. U.S. contributions, as a Member State, finance most of the UN’s humanitarian relief and development agencies including the UN Children’s Fund (UNICEF), the World Food Programme (WFP), and the UN Development Programme (UNDP).

These UN agencies undertake activities critical to U.S. national security interests that would be difficult, if not impossible, for the U.S. to undertake alone. U.S. voluntary contributions are financed through the State Department’s International Organizations and Programs account.