The United Nations High Commissioner for Refugees (UNHCR) warned on Tuesday that the worsening funding crisis could leave nearly 8.3 million refugees and forcibly displaced people without access to assistance this year and push protection systems in some countries toward collapse.
UNHCR is facing one of the worst funding crises in its history following cuts to aid by the United States and other donors. A new UNHCR report said the agency faces a funding gap of $5.789 billion after available funding fell by 24% between 2024 and 2025.
As of July, UNHCR had received only 32% of the $8.505 billion it requested for 2026, while the global number of forcibly displaced and stateless people remains close to record-high levels.
UNHCR expects the population covered by its mandate to reach 131.2 million by the end of the year, up from 129.4 million at the end of last year.
In its 26-page report examining the impact of budget cuts on refugee registration, child protection programs and services for survivors of gender-based violence, UNHCR said that when funding falls below a certain level, “the system does not shrink, it fails.”
The report highlighted severe consequences in countries hosting large numbers of displaced people. In Chad, where refugees have fled the conflict in neighboring Sudan, 319,000 people face delays in registration, while 200,000 women and girls could lose access to safe spaces and prevention programs.
In Sudan, which the United Nations considers home to the world’s largest displacement crisis due to a civil war that entered its fourth year in April, around 140,000 refugees and asylum seekers remained unregistered by mid-year after registration activities were suspended during the first five months of 2026.
In Afghanistan, UNHCR cash grants for returnees were reduced from $375 to $170 per person, while the country has received more than one million returnees this year alone, following forced or voluntary returns from neighboring countries including Iran and Pakistan.
UNHCR said further cost-cutting measures cannot compensate for the funding shortfall. The agency had already reduced its workforce by 33% in 2025, closed offices at 140 locations and halted operations in 15 countries compared with 2024.
It also said an increasing share of donor funding is being strictly earmarked for specific expenditures, rising to 51% in 2026 from 19% five years ago. This limits UNHCR’s ability to redirect resources toward the most urgent priorities.
UNHCR warned that declining funding is gradually eroding protection systems, increasing the risk of refugees remaining undocumented and leaving survivors of gender-based violence without the support they need.
Source: Reuters
