UN agency warns funding crisis could leave 8.3 million people without aid

GENEVA, September 29 - The United Nations refugee agency, UNHCR, has issued a stark warning that a severe funding crisis could leave nearly 8.3 million refugees and displaced individuals without essential aid this year, potentially causing some protection systems to collapse. The agency highlighted this in a 26-page report, detailing the impact of budget cuts on refugee registration, child protection programs, and services for survivors of gender-based violence.

UNHCR is currently experiencing its most significant funding crisis to date, facing a $5.789 billion funding gap after aid cuts by the United States and other countries, coupled with a 24% decrease in available funds from 2024 to 2025.

As of July, UNHCR had only received 32% of the $8.505 billion required for 2026, while the global population of forcibly displaced and stateless individuals remains alarmingly high. The agency anticipates the displaced population to reach 131.2 million by the end of the year, up from 129.4 million at the end of 2025. The report emphasizes that once a critical funding threshold is crossed, the system fails rather than simply becomes underfunded.

In countries hosting large displaced populations, the consequences are dire. In Chad, conflict from neighboring Sudan has led to 319,000 people facing registration delays, while 200,000 women and girls may lose access to safe spaces and prevention programs. Sudan, considered the world's worst displacement crisis with ongoing civil war, saw 140,000 refugees and asylum-seekers remain unregistered by mid-2026 due to suspended registration activities from April.

In Afghanistan, UNHCR's grant for returning individuals has been reduced from $375 to $170 per person, despite receiving over one million new arrivals this year, primarily from Iran and Pakistan.

UNHCR stressed that further budget cuts cannot bridge the funding gap, as they have already reduced their workforce by 33% in 2025, closed offices in 140 locations, and discontinued operations in 15 countries compared to the previous year. The agency also noted that an increasing portion of donor funding is earmarked, rising to 51% in 2026 from 19% in 2019, which limits its flexibility to allocate resources to urgent priorities.

UNHCR warned that diminishing funding is gradually undermining the protection system, heightening the risk of refugees remaining undocumented and survivors of gender-based violence lacking necessary support.