The United Nations High Commissioner for Refugees (UNHCR) has warned that nearly 8.3 million refugees and other forcibly displaced people face 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 percent of that amount, totaling $2.7 billion. This significant 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. Around 233,000 children are at risk of losing child protection services. In Ethiopia, child protection coverage in some areas has diminished by up to 85 percent. In Sudan, tens of thousands of survivors of sexual violence and children at serious risk could lose access to critical protection services.
UNHCR's external relations chief, Dominique Hyde, 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. When registration stops or child protection services disappear, the very risks that people fled – violence, exploitation, and abuse – reappear in displacement.
The number of forcibly displaced people worldwide remains alarmingly high. According to UNHCR, 117.8 million people were forcibly displaced from their homes at the end of 2025, down from 2024's record 123.2 million. Of these, 35.6 million were refugees under UNHCR's mandate, with two-thirds coming from Venezuela, Ukraine, Syria, Afghanistan, and Sudan. The agency has shed nearly 5,000 jobs in 2025, more than a quarter of its workforce, due to funding constraints.
Major donors, including the United States, have heavily slashed foreign aid, contributing to the funding crisis. The United States has traditionally been the world's top donor, but its reduced contributions have significantly impacted UNHCR's ability to provide assistance. Other major donors have also been tightening their belts, further exacerbating the issue. In Iraq, up to 350,000 refugees and asylum seekers risk losing access to economic inclusion opportunities due to funding cuts.
As funding dwindles, UNHCR's efforts to help people move away from reliance on aid are being undermined. 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 agency is working to address these challenges, but the situation remains dire without sufficient funding to support its critical work.
Key points
- 8.3 million refugees and displaced people are at risk of losing vital assistance due to severe funding cuts.
- UNHCR's funding has decreased from $5.2 billion in 2024 to $3.9 billion in 2025.
- The agency requires $8.5 billion in 2026 but has only received 32 percent of that amount by the end of July.
