GENEVA — Nearly 8.3 million refugees and other forcibly displaced people globally are facing the immediate threat of losing vital assistance and basic protection services as a severe funding shortfall pushes humanitarian operations toward a breaking point.

The UN High Commissioner for Refugees (UNHCR) issued an urgent warning, highlighting that its capacity to safeguard and assist refugees, internally displaced persons (IDPs), and stateless individuals is eroding rapidly under a worsening financial climate. According to the agency, by the end of July, it had secured only 32 percent of the massive $8.5 billion required to fund its life-saving operations for the year.

The funding crunch is already translating into drastic real-world cutbacks across multiple crisis zones. In Sudan—recognized by the United Nations as the world's most severe displacement crisis amid an ongoing civil war—registration operations were suspended for the first five months of the year, leaving approximately 140,000 refugees and asylum-seekers unregistered.

Similarly, in Afghanistan, where over a million people have returned this year due to forced or voluntary repatriation from neighboring nations like Iran and Pakistan, reintegration support grants have plummeted. Cash grants given to returning individuals have been heavily slashed from $375 down to $170 per person, while formal household reintegration packages reached a mere 175 households compared to thousands in previous years. In Syria, more than 162,000 vulnerable internally displaced persons and returning refugees face losing financial aid during the critical early stages of their return.

Humanitarian officials note that the crisis is compounded by structural changes in how donations are delivered. The proportion of UNHCR funding tied strictly to specific projects or activities by donors has surged dramatically, reducing the agency’s operational flexibility to shift resources to newly emerging emergencies or fast-evolving crises.

These financial constraints follow widespread internal austerity measures. To cope with previous deficits, UNHCR previously slashed its global workforce by 33%, shut down offices across 140 locations, and entirely discontinued operations in 15 countries.

The UN agency has cautioned that reduced funding is progressively dismantling essential protection structures. This leaves vulnerable populations—particularly survivors of gender-based violence and children—without critical safety nets and increases the risk of individuals remaining undocumented.

UNHCR is urgently appealing to international donors, governments, and private partners to step up contributions and expand flexible funding options to maintain critical lifelines and protect hard-won humanitarian gains.