Nearly 8.3 million refugees and other forcibly displaced people risk losing vital assistance as severe funding cuts push the UN refugee agency’s protection services towards breaking point.
The UN High Commissioner for Refugees (UNHCR) issued the warning on Tuesday in a report highlighting the human cost of the agency’s worsening funding crisis.
UNHCR said its available funding fell from $5.2 billion in 2024 to $3.9 billion in 2025, while the number of people requiring protection remains near historic highs.
The agency needs $8.5 billion in 2026 to protect refugees and other displaced people, but had received only 32 per cent, or $2.7 billion, by the end of July.
UNHCR said the funding gap was now affecting even its highest-priority operations.
> “Protection cannot be reduced indefinitely without systems collapsing,” said Dominique Hyde, UNHCR’s external relations chief.
> “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.”
Protection Services Under Pressure
The impact is already being felt across major displacement situations.
In Chad, 319,000 refugees face registration delays, leaving them without documentation needed to access essential services. About 233,000 children could also lose access to child protection services.
In Ethiopia, child protection coverage has fallen by as much as 85 per cent in some areas.
In Sudan, tens of thousands of survivors of sexual violence and children considered at serious risk could lose access to critical protection services.
Hyde warned that when registration and child protection systems break down, people fleeing violence, exploitation and abuse can once again face the same risks during displacement.
Quarter of UNHCR Workforce Cut
UNHCR said 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 UNHCR’s mandate, with two-thirds coming from Venezuela, Ukraine, Syria, Afghanistan and Sudan.
The agency also shed nearly 5,000 jobs in 2025, representing more than a quarter of its workforce, as the United States and other major donors reduced or tightened foreign aid spending.
UNHCR said the funding crisis was also undermining efforts to help displaced people become less dependent on humanitarian assistance.
In Iraq, up to 350,000 refugees and asylum seekers risk losing access to economic inclusion opportunities.
Support for people returning to their countries of origin is also being affected. In Syria, 162,500 vulnerable internally displaced people and returnees will not receive initial financial assistance unless additional funding arrives quickly.
UNHCR warned that the loss of such support could make it harder for vulnerable people to rebuild their lives after displacement.
Chronicle NG reports that the warning comes as humanitarian agencies face growing pressure to sustain essential services amid declining international aid.
