The UN Refugee Agency (UNHCR) is facing a severe funding crisis and urgently requires at least $300 million (CHF 240 million) by the end of the year to prevent a major deficit. Filippo Grandi, the UNHCR High Commissioner, reported that nearly 5,000 employees have already lost their jobs this year due to budget cuts, and further reductions are expected if additional funds are not secured. Grandi warned member states that without new resources, the agency could face “a very difficult start to 2026.”
The funding shortfall is driven by reduced contributions from the United States and several other countries, leaving the agency at risk of running out of cash. UNHCR had initially announced cuts of 3,500 to 4,000 positions, but this number has now risen to nearly 5,000. The cuts and organizational changes have affected 185 UNHCR offices worldwide. While the agency requested over $10 billion—an envelope approved by member states last year—it now expects to receive only $3.9 billion by year-end, resulting in a $1.3 billion shortfall, the worst financial situation in a decade.
Grandi emphasized that the crisis is not purely financial but also stems from political decisions with devastating economic consequences. He acknowledged that it will take years to rebuild the agency’s expertise but reaffirmed UNHCR’s commitment to assisting refugees. Looking ahead, the agency is requesting $8.5 billion from donors for 2026 to continue its operations and support vulnerable populations globally.
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