UN refugee agency warns of catastrophic funding shortfall affecting millions

The UN refugee agency (UNHCR) has sounded an alarm over what it describes as one of its worst funding crises in recent history, threatening the delivery of essential aid to vulnerable populations across the region and beyond.

The crisis stems from a significant drop in donor contributions, with overall resources declining by 24 percent between 2024 and 2025. The gap, which stands at US$5.789 billion, comes at a time when global displacement continues to rise, placing mounting pressure on the agency's operations.

Without additional contributions, UNHCR officials have warned that approximately 8.3 million people currently dependent on the agency's assistance programmes could face severe disruption to services including food aid, shelter, healthcare, and education. The funding shortfall affects operations across multiple countries in South and Southeast Asia, where refugee camps and displacement sites house hundreds of thousands of people.

The reduction in funding coincides with cuts from several major contributors, with the United States playing a particularly significant role in the overall decline. The agency has called on governments and private donors to bridge the gap urgently, warning that delays in additional funding could have severe humanitarian consequences for some of the world's most vulnerable populations.

UNHCR has indicated it is reviewing operations and prioritising assistance to the most critical needs, but warned that such measures alone cannot address the scale of the shortfall without renewed international financial commitment.