UNHCR Warns 8.3 Million Displaced People Risk Losing Aid Amid Severe Funding Cuts

The United Nations refugee agency, UNHCR, has warned that nearly 8.3 million refugees and other forcibly displaced people worldwide could lose access to essential assistance due to severe funding shortages.

In a report released on Tuesday, the agency said sustained budget cuts were weakening its ability to protect and support refugees, internally displaced persons (IDPs) and stateless people, even as global displacement remains at historically high levels.

UNHCR disclosed that its available funding fell from $5.2 billion in 2024 to $3.9 billion in 2025. The agency said it required $8.5 billion in 2026 to carry out its protection and assistance programmes but had received only $2.7 billion, representing 32 per cent of its target, by the end of July.

The agency warned that the funding gap was pushing humanitarian support systems in major displacement regions towards a breaking point. Despite introducing reforms and prioritising critical operations, UNHCR said the shortfall was now affecting even its most essential services.

Dominique Hyde, UNHCR’s director of external relations, said protection services could not be reduced indefinitely without causing systems to collapse. She warned that when services become too limited, they may stop functioning entirely, leaving vulnerable people without the support they need.

The report highlighted the impact of funding cuts in several countries. In Chad, 319,000 refugees face delays in registration, preventing them from obtaining documents needed to access services, while approximately 233,000 children could lose access to child protection programmes. In Ethiopia, child protection coverage in some areas has declined by as much as 85 per cent.

In Sudan, tens of thousands of survivors of sexual violence and children facing serious risks could lose access to critical protection services. UNHCR warned that when registration and child protection programmes disappear, displaced people may once again face violence, exploitation and abuse.

UNHCR Cuts More Than A Quarter Of Workforce

According to UNHCR, 117.8 million people worldwide were forcibly displaced at the end of 2025, down from a record 123.2 million in 2024. Of that figure, 35.6 million were refugees under the agency’s mandate, with two-thirds originating from Venezuela, Ukraine, Syria, Afghanistan and Sudan.

The agency also revealed that it eliminated nearly 5,000 jobs in 2025, representing more than a quarter of its workforce. The cuts came as the United States, traditionally the largest donor to humanitarian assistance, reduced foreign aid, while other major donors also tightened spending.

UNHCR said the funding crisis was undermining its efforts to help displaced people become economically independent. In Iraq, up to 350,000 refugees and asylum seekers risk losing access to programmes designed to support their economic inclusion.

The agency added that assistance for people returning to their home countries, whether voluntarily or under pressure, was also declining. In Syria, 162,500 vulnerable internally displaced people and returning refugees may miss out on initial financial assistance unless additional funding arrives quickly, limiting their ability to rebuild their lives.