The United Nations High Commissioner for Refugees warned on September 30, 2026, that 8.3 million forcibly displaced people face losing vital assistance as protection services crumble under a severe funding shortfall. In a report detailing the human cost of budget cuts, the agency’s available funding fell from $5.2 billion in 2024 to $3.9 billion in 2025.
Funding Shortfall and Budget Cuts in 2025 and 2026
UNHCR stated that it required $8.5 billion for refugee protection this year, yet by the close of July, it had collected a mere 32 percent of that sum, which equals $2.7 billion. According to TOLOnews, the agency is facing a funding shortfall of $5.789 billion, while its available funding declined by about 24 percent between 2024 and 2025. Germany, one of the world’s major aid donors, is set to reduce its development budget in 2027 for the fifth consecutive year.
To reduce costs, UNHCR cut its workforce by roughly 33 percent, shedding nearly 5,000 jobs in 2025—more than a quarter of its workforce—while closing offices in 140 locations and suspending activities in 15 countries, tolonews.com reported. Dominique Hyde, UNHCR’s Director of External Relations, stated that protection cannot be reduced indefinitely without systems collapsing.
Impact on Global Displacement Figures
Projections indicate that the total count of refugees, displaced persons, and stateless individuals worldwide under the agency’s supervision will rise to 131.2 million by year’s end, marking an increase from the 129.4 million recorded at the close of last year, according to tolonews.com. Dawn reported that 117.8 million people worldwide were forcibly displaced from their homes at the end of 2025, down from 2024’s record 123.2 million. Of those 117.8 million, 35.6 million were refugees under UNHCR’s mandate, with two-thirds originating from Venezuela, Ukraine, Syria, Afghanistan, and Sudan.
Hyde noted that the agency’s ability to protect and assist refugees and internally displaced people is being eroded by a sustained and worsening funding shortfall. She added that millions will lose the protection and opportunities that keep them safe and allow them to rebuild their lives.
Threats to Refugee Education Programs
Millions of refugee children could lose access to education as the deepening funding crisis threatens school programs. Sources report that out of an estimated 13.1 million refugee children globally in 2025, approximately half—amounting to 5.8 million—are still out of school as financial cutbacks risk reversing years of educational gains.
The transition to secondary education remains one of the biggest challenges. Only 32 percent of refugee children were enrolled in high school in 2025, compared to 65 percent at the primary level. Two in three arrivals lack foundational learning to prepare them for the classroom. While primary school attendance rates are similar for boys and girls, the gender gap widens sharply in secondary education due to poverty, early marriage, and safety concerns.
Conversely, higher education enrollment reached a record 11 percent in 2025—up from 9 percent in 2024, according to sources—with more than 450,000 students attending university or vocational training. UN High Commissioner for Refugees Barham Salih stated that education gives young people the tools to shape their own future.
Consequences for Protection Services in Sudan and Syria
Dawn.com reported that in Sudan, vital protection services for children facing severe hazards and tens of thousands of sexual violence survivors might be cut off. When registration stops or child protection services disappear, the risks that people fled—including violence, exploitation, and abuse—reappear in displacement.
Returnees also face shrinking support. In Syria, 162,500 vulnerable internally displaced persons and returned refugees will not receive initial financial assistance unless funding arrives quickly, reducing their ability to rebuild their lives, according to dawn.com.
Questions Frequently Asked by Readers
How much money did UNHCR receive by July 2026?
UNHCR had received only 32 percent of the $8.5 billion it required for the year, amounting to $2.7 billion.
How many jobs did UNHCR cut during its 2025 workforce reduction?
UNHCR shed nearly 5,000 jobs in 2025, which amounted to more than a quarter of its workforce.
What percentage of refugee students were enrolled in higher education in 2025?
Refugee enrollment at the tertiary level reached a record 11 percent in 2025, with over 450,000 students attending university or technical and vocational training.
How many displaced people are expected to be under UNHCR mandates by the end of the year?
The number of refugees, displaced persons, and stateless persons is expected to reach 131.2 million by the end of the year.
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