The United Nations High Commissioner for Refugees (UNHCR) has warned that nearly 8.3 million refugees and other forcibly displaced people are at risk of losing vital assistance due to severe funding cuts. The agency's ability to protect and assist refugees, internally displaced people (IDPs), and stateless people is being eroded by a sustained and worsening funding shortfall. This comes as the number of people the agency is mandated to protect remains at historically high levels.
According to UNHCR, its available funding has decreased from $5.2 billion in 2024 to $3.9 billion in 2025. The agency requires $8.5 billion this year to protect refugees, but by the end of July, it had only received 32% of that amount, totaling $2.7 billion. This funding gap puts 8.3 million forcibly displaced people at risk of losing access to UNHCR assistance. The agency has undertaken reforms and prioritization measures to protect its most critical work, but even its highest-priority work is now being affected.
The consequences of these funding cuts are far-reaching and devastating. In Chad, 319,000 refugees face registration delays, leaving them without the necessary documentation to access services. In Ethiopia, child protection coverage in some areas has diminished by up to 85%. In Sudan, tens of thousands of survivors of sexual violence and children at serious risk could lose access to critical protection services. The agency warns that when registration stops or child protection services disappear, the risks that people fled, such as violence, exploitation, and abuse, reappear in displacement.
Dominique Hyde, UNHCR's external relations chief, emphasized that protection cannot be reduced indefinitely without systems collapsing. Below a certain threshold, services do not simply reach fewer people; they can stop functioning altogether, leaving those most at risk without the protection they need. The agency has shed nearly 5,000 jobs in 2025, more than a quarter of its workforce, due to funding constraints. This has significant implications for its ability to provide assistance to those in need.
The funding cuts are also affecting UNHCR's efforts to help people move away from reliance on aid. In Iraq, up to 350,000 refugees and asylum seekers risk losing access to economic inclusion opportunities. When people return to their home countries, whether voluntarily or under duress, help is also drying up. In Syria, 162,500 vulnerable IDPs and returned refugees will not receive initial financial assistance unless funding is received quickly, reducing their ability to rebuild their lives.
The global refugee crisis continues to grow, with 117.8 million people worldwide forcibly displaced from their homes at the end of 2025, according to UNHCR. This is down from 2024's record 123.2 million. Of those 117.8 million, 35.6 million were refugees under UNHCR's mandate, with two-thirds coming from Venezuela, Ukraine, Syria, Afghanistan, and Sudan. The agency is working to address the crisis, but funding constraints are severely limiting its ability to provide assistance.
The United States, traditionally the world's top donor, has heavily slashed foreign aid, while other major donors have been tightening their belts. UNHCR is seeking urgent funding to address the crisis, warning that continued severe funding cuts are pushing refugee support and protection structures towards breaking point in the world's main displacement situations. The agency is calling for immediate support to ensure the continuation of vital assistance to those in need.
Key points
- 8.3 million refugees and displaced people at risk of losing vital assistance due to severe funding cuts.
- UNHCR requires $8.5 billion in funding this year but has only received 32% of that amount.
- Funding cuts have resulted in the loss of nearly 5,000 jobs, over a quarter of UNHCR's workforce.
