The United Nations refugee agency has issued a stark warning that a worsening funding shortfall could deprive nearly 8.3 million refugees and forcibly displaced individuals of vital assistance this year. This financial strain threatens to overwhelm protection systems in several countries, pushing them toward collapse.
UNHCR is currently grappling with one of its most severe funding crises, triggered by aid reductions from the United States and other donor nations. The agency faces a staggering $5.789 billion deficit, as revealed in a recent report, following a 24 percent decline in available funds between 2024 and 2025.
By July 2026, UNHCR had secured only 32 percent of the $8.505 billion it requires for the year, even as the global population of forcibly displaced and stateless persons remains near historic highs. The agency anticipates that the number of people under its protection will rise to 131.2 million by the end of 2026, up from 129.4 million at the close of 2025.
“Below a certain threshold, the system doesn’t shrink, it fails,” the report states, emphasizing the severe impact of budget cuts on critical services such as refugee registration, child protection programs, and support for survivors of gender-based violence.
The report draws attention to particularly dire situations in countries hosting large displaced populations. In Chad, where refugees fleeing conflict in neighboring Sudan have sought shelter, 319,000 individuals face delays in registration. Additionally, 200,000 women and girls risk losing access to safe spaces and prevention initiatives.
Meanwhile, Sudan, which the UN identifies as experiencing the world’s worst displacement crisis due to a civil war now in its fourth year, had approximately 140,000 refugees and asylum seekers unregistered by mid-2026. This follows a suspension of registration activities during the first five months of the year.
In Afghanistan, the financial assistance provided to returnees has been drastically reduced from $375 to $170 per person. The country has received over one million returnees this year alone, many forced or voluntarily returning from neighboring countries such as Iran and Pakistan.
UNHCR has already implemented significant cost-saving measures, including a 33 percent reduction in its workforce in 2025, the closure of offices in 140 locations, and the cessation of operations in 15 countries compared to 2024. Despite these efforts, the agency warns that further cuts cannot bridge the funding gap.
Notably, the report highlights a growing proportion of donor contributions being tightly earmarked, increasing to 51 percent in 2026 from 19 percent five years earlier. This restricts UNHCR’s flexibility to allocate resources where they are most urgently needed.
The agency cautions that ongoing funding reductions are steadily undermining the protection framework, heightening the risk that refugees remain undocumented and survivors of gender-based violence are left without essential support services.
Leave an opinion