Refugee children standing together; photo by Salah Darwish on Unsplash

The UN Refugee Agency has warned that nearly 8.3 million refugees and other forcibly displaced people could lose essential assistance in 2026 as a deepening funding crisis erodes protection systems worldwide.

UNHCR’s newly reported funding gap stands at about $5.789 billion. By July, the agency had received only 32 percent of the $8.505 billion required for its 2026 operations, despite displacement remaining close to historic levels.

The financial strain follows a 24 percent fall in available funding between 2024 and 2025. UNHCR has already reduced its workforce by roughly one third and closed offices while attempting to preserve the most urgent protection and emergency programmes.

The operational consequences are increasingly visible. Registration has reportedly stalled for hundreds of thousands of refugees in Chad and Sudan, limiting access to documentation, legal protection and humanitarian support.

Services for survivors of gender-based violence are also at risk, with an estimated 200,000 women and girls potentially losing access to specialised protection. Cash assistance for Afghan returnees has meanwhile been sharply reduced.

UNHCR says the crisis is made harder by the growing share of tightly earmarked contributions, which restricts its ability to redirect funds rapidly to the people and operations facing the greatest danger.

The agency is urging governments and other donors to provide predictable and flexible funding, warning that further reductions could turn severe service cuts into the collapse of protection systems in several countries.

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