UNHCR to Cut Nearly 20% of Its Budget Amid Rising Global Displacement
GENEVA — The United Nations refugee agency (UNHCR) is preparing to slash its budget by nearly one-fifth in 2026, citing severe financial constraints, even as global displacement reaches unprecedented levels due to wars and humanitarian crises — most notably the ongoing conflict in Sudan.
According to UNHCR’s newly released budget plan, the agency will operate on $8.5 billion next year, down from $10.2 billion in 2025. The cuts will include the closure of its Southern Africa regional bureau in Pretoria and the elimination of nearly 4,000 jobs worldwide.
While the document does not detail the causes of the financial shortfall, a UNHCR spokesperson described the budget as “aspirational,” noting that the agency has received only half of its required funding in recent years.
The financial squeeze reflects a broader crisis in global aid funding, as major donors — including the United States and several European countries — redirect spending toward defense and security amid rising geopolitical tensions and the war in Ukraine.
UNHCR expects the number of forcibly displaced and stateless people to reach a record 136 million in 2026, up from nearly 130 million in 2024. The figure is a planning estimate ahead of a donor meeting in Geneva next month, not a definitive forecast. Still, officials warn that underfunding could prove catastrophic.
“Donor cuts are already creating greater risks for refugees. The vulnerable will die,” the spokesperson cautioned.
The decision to shut down the Southern Africa bureau, effective October 1, will shift regional operations to East and West Africa. The Pretoria office, which oversaw programs in 16 countries and employed 72 staff, coordinated support for refugees fleeing violence in the Democratic Republic of Congo and those displaced by the insurgency in northern Mozambique.
“We have already started seeing the impact of reduced funding across different operations,” said Duniya Aslam Khan, UNHCR’s spokesperson for Southern Africa. “Cash assistance has been reduced. Health, education, and food programs have all been affected.”
The U.S. remains UNHCR’s largest donor, but its voluntary contributions — on which the agency heavily relies — have declined amid competing global priorities. Earlier this year, the U.N. World Food Programme also closed its Southern Africa bureau for similar reasons.
Humanitarian experts warn that these funding cuts come at a time when global displacement crises are accelerating, from Sudan and Gaza to Afghanistan and Ukraine — stretching aid systems to the breaking point.
