The United Nations announced it will avoid imminent financial collapse by scrapping a 75-year-old budget rule that required refunding unspent member contributions. This change saves the organization hundreds of millions of dollars annually that it previously had to allocate despite nonpayment issues.

The rule was designed to prevent institutional bloat, but created an unintended burden when countries failed to pay on time. The U.S. and China were primary offenders, with repeated late payments or nonpayments forcing the UN to cover shortfalls while still owing refunds to delinquent members.

UN officials said the reform addresses a long-standing structural weakness that threatened operations across the sprawling international body. The change allows the organization to retain funds and maintain budget stability without penalizing timely-paying members.

This marks a significant shift in how the UN manages its finances, potentially improving cash flow and reducing dependency on major contributors who have historically fallen behind on their obligations.