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United Nations on brink of financial collapse

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The United Nations is teetering on the edge of a financial collapse, with internal projections showing the organization could run out of money to pay salaries and suppliers by September.

Key Details:

  • The UN has reportedly already slashed $600 million from its $3.7 billion operating budget this year, freezing hiring and moving some jobs out of New York in a desperate bid to avoid default.

  • A memo shows the Trump administration is weighing a full halt in payments to the UN, potentially triggering a $1.1 billion deficit this year.

  • Late or missing payments from 41 countries—including the U.S., China, Argentina, and Mexico—totaled $760 million last year, with just 49 member states paying on time.

Diving Deeper:

The United Nations is confronting a full-scale financial emergency that could leave it unable to pay staff or fund its core functions within months, according to a report published this week by The Economist. Secretary-General António Guterres has already slashed the UN’s core operating budget by $600 million—about 17%—in a bid to avoid a shutdown, but the crisis appears to be spiraling beyond his control.

Internal UN projections now warn that without additional cost-cutting or a surge in payments, the organization will run a $1.1 billion shortfall by year’s end. That would exhaust its reserves and leave the global body unable to fund its General Assembly, peacekeeping missions, or human rights operations as early as September. Guterres, in a letter seen by The Economist, has warned that the peacekeeping budget could run dry by mid-year.

The UN’s budget problems stem from a mix of chronic late payments and uncollected dues. Member states are required to pay their assessed contributions annually, based largely on the size of their economies. But many now pay late—some not at all. In 2024, nearly 15% of total contributions arrived in December, undermining the UN’s ability to manage expenses throughout the year. As of now, 41 countries—including the U.S., Argentina, and Venezuela—owe a combined $760 million in unpaid dues. Just 49 nations paid on time.

The U.S. and China, each responsible for about 20% of the UN’s total budget, are among the most consequential delinquents. While China did pay its bill in 2023, the money didn’t arrive until December 27th—too late to be fully spent, triggering a rebate under UN rules that forced the organization to return unused funds to all members, even those who hadn’t paid. The UN now estimates that it will have to issue a $300 million rebate in 2026 and a $600 million rebate in 2027—roughly 17% of its entire operating budget.

The situation with the United States is potentially more destabilizing. A White House memo reportedly indicates that President Trump is considering a total suspension of America’s $2.3 billion in annual dues as part of a broader reevaluation of U.S. involvement in international organizations. Trump had previously frozen payments to global bodies, dismantled USAID, and ordered a sweeping review of U.S. commitments to multilateral institutions, including the UN.

Under Article 19 of the UN Charter, any country that fails to pay its dues for two consecutive years risks losing its voting rights in the General Assembly. The U.S. currently owes around $3 billion—just shy of the $4.5 billion threshold that would trigger the rule. If Trump follows through, the U.S. could lose its vote by 2027.

This would not be the first time a major power tested the limits. During the Cold War, both France and the Soviet Union withheld payments over disputes regarding peacekeeping missions. To avoid enforcing the penalties, the General Assembly simply stopped holding votes—paralyzing the body out of fear that enforcing the rule would break it entirely.

Today, with cash drying up and political will fraying, UN diplomats are again sifting through precedents from the past—searching for answers, and bracing for what could be a seismic blow to the institution.

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RFK Jr. planning new restrictions on drug advertising: report

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The Trump administration is reportedly weighing new restrictions on pharmaceutical ads—an effort long backed by Health Secretary Robert F. Kennedy Jr. Proposals include stricter disclosure rules and ending tax breaks.

Key Details:

  • Two key proposals under review: requiring longer side-effect disclosures in TV ads and removing pharma’s tax deduction for ad spending.

  • In 2024, drug companies spent $10.8 billion on direct-to-consumer ads, with AbbVie and Pfizer among the top spenders.

  • RFK Jr. and HHS officials say the goal is to restore “rigorous oversight” over drug promotions, though no final decision has been made.

Diving Deeper:

According to a Bloomberg report, the Trump administration is advancing plans to rein in direct-to-consumer pharmaceutical advertising—a practice legal only in the U.S. and New Zealand. Rather than banning the ads outright, which could lead to lawsuits, officials are eyeing legal and financial hurdles to limit their spread. These include mandating extended disclosures of side effects and ending tax deductions for ad spending—two measures that could severely limit ad volume, especially on TV.

Health and Human Services Secretary Robert F. Kennedy Jr., who has long called for tougher restrictions on drug marketing, is closely aligned with the effort. “We are exploring ways to restore more rigorous oversight and improve the quality of information presented to American consumers,” said HHS spokesman Andrew Nixon in a written statement. Kennedy himself told Sen. Josh Hawley in May that an announcement on tax policy changes could come “within the next few weeks.”

The ad market at stake is enormous. Drugmakers spent $10.8 billion last year promoting treatments directly to consumers, per data from MediaRadar. AbbVie led the pack, shelling out $2 billion—largely to market its anti-inflammatory drugs Skyrizi and Rinvoq, which alone earned the company over $5 billion in Q1 of 2025.

AbbVie’s chief commercial officer Jeff Stewart admitted during a May conference that new restrictions could force the company to “pivot,” possibly by shifting marketing toward disease awareness campaigns or digital platforms.

Pharma’s deep roots in broadcast advertising—making up 59% of its ad spend in 2024—suggest the impact could be dramatic. That shift would mark a reversal of policy changes made in 1997, when the FDA relaxed requirements for side-effect disclosures, opening the floodgates for modern TV drug commercials.

Supporters of stricter oversight argue that U.S. drug consumption is inflated because of these ads, while critics warn of economic consequences. Jim Potter of the Coalition for Healthcare Communication noted that reinstating tougher ad rules could make broadcast placements “impractical.” Harvard professor Meredith Rosenthal agreed, adding that while ads sometimes encourage patients to seek care, they can also push costly brand-name drugs over generics.

Beyond disclosure rules, the administration is considering changes to the tax code—specifically eliminating the industry’s ability to write off advertising as a business expense. This idea was floated during talks over Trump’s original tax reform but was ultimately dropped from the final bill.

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International

Judiciary explores accountability options over Biden decline ‘coverup’

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Former President Joe Biden salutes the departure party before boarding Special Air Mission 46 at Joint Base Andrews, Md., Jan. 20, 2025. 

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No obvious solutions emerged during a congressional hearing Wednesday on how to hold those accountable for the alleged cover-up of President Joe Biden’s mental and cognitive decline, but witnesses had some suggestions for how to prevent similar situations in the future.

Republicans have been adamant for some time that Democratic lawmakers, the prior administration, the legacy media and those closest to Biden conspired to hide the former president’s mental and cognitive decline from the American people. More recently, allegations have surfaced that some of Biden’s staff or potentially others may have used an autopen – a machine that can replicate signatures – to sign official documents for Biden without his knowledge or consent.

From the Senate Judiciary Committee hearing on June 18th, 2025

Wednesday’s witnesses agreed that further investigation needs to be done into these questions. Republicans also explored what can be done after the fact and how to prevent similar events from happening in the future. The Senate Judiciary Committee’s hearing into those questions Wednesday’s boycotted by all but one Democrat.

Republicans didn’t miss the opportunity to call them out for it. U.S. Sen. Eric Schmitt, R-MO, said Democrats’ absence and their failure to call any witnesses to testify was “deeply disappointing” but “not surprising.”

“Their absence speaks volumes – an implicit admission that the truth is too inconvenient to face,” Schmitt said. “This de facto boycott is not just a refusal to participate. It’s a refusal to serve the American people who deserve answers about who was truly leading their government.”

From the Senate Judiciary Committee hearing on June 18th, 2025

Much of the hearing’s discussion revolved around proper uses of the autopen, which witnesses testified can only be rightfully used when the president specifically delegates its use to the user. The committee also discussed Section 4 of the 25th Amendment to the Constitution, which talks about succession in the case of a president becoming unfit or unable to fulfill the role. The amendment authorizes the vice president and a majority of the president’s cabinet to declare the president unfit, though that declaration has to be validated by a vote from Congress in order to have any effect.

What’s missing, however, is a clear manner of recourse for lawmakers or the public if those around the president fail to act despite plain signs he is incapable of holding office. Republicans wanted to know what they could do to prevent the alleged conspiracy from simply fading into history without consequences for any involved.

“As a government, it is imperative that we have clear contingency plans when emergency strikes, and yes, it is an emergency when we have a sitting president who is unable to discharge the duties of that office,” said U.S. Sen. John Cornyn, R-TX.

He asked witness Theo Wold, a visiting fellow for law and technology policy with The Heritage Foundation and who worked in the previous Trump administration, if any criminal statutes could be applied to those who are found to have participated in the alleged cover-up.

“In this case, some have suggested that there may be potential crimes committed by members of the Cabinet for failing to act basically, suborning perjury, forging, forging government documents, impersonating a federal officer, making false statements, conspiracy to defraud the United States, obstruction of justice, wire or mail fraud…  Do you think there’s any application of any of those criminal statutes to the circumstances of the Biden presidency?” Cornyn asked.

“There very well could be,” Wold said, but he added that it would be “a question for a prosecutor to take up in their discretion.”

While witnesses agreed that anyone participating in a cover-up should be held accountable, the solutions for doing so weren’t as clear as recommendations for how to prevent similar situations in the future.

John Harrison, James Madison Distinguished Professor of Law at the University of Virginia, didn’t see an obvious method of redress for what already happened but suggested that Congress perhaps require greater documentation of presidential actions going forward.

Wold provided additional suggestions, such as a revival of discussion around “other guardrails” that can be imposed on the 25th Amendment. There was lively debate toward the end of Ronald Reagan’s presidency about adding a mental health professional to the White House medical team or “whether the surgeon general should oversee the inclusion of medical reporting as part of… the 25th Amendment,” according to Wold. But he said there hadn’t been serious discussion since on how to improve the amendment. He also agreed with Sen. Katie Britt, R-AL, that some of the terms in the amendment, like “unable,” should be more clearly defined.

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