The United Nations High Commissioner for Refugees (UNHCR) is facing a severe crisis due to significant cuts in international aid. According to Filippo Grandi, the agency’s chief, nearly 5,000 jobs have been lost this year, which is more than a quarter of its entire workforce. This reduction is a result of substantial decreases in humanitarian funding, particularly from the United States, which has traditionally been the world’s top donor.

The US, under President Donald Trump, has heavily slashed foreign aid, causing widespread disruption globally. The UNHCR has been severely impacted, with Washington previously accounting for over 40 percent of its budget. The agency’s approved budget for 2025 is $10.6 billion, but it has only received approximately half of its budget requirements in recent years, amounting to around $5 billion. As of now, the projected funds available for 2025 are $3.9 billion, a decrease of $1.3 billion compared to 2024, representing a roughly 25 percent reduction.

The consequences of these funding cuts are far-reaching, with critical programs and life-saving activities being halted. Gender-based violence prevention work, psychosocial support to survivors of torture, and other essential services have been stopped. Schools have been closed, food assistance has decreased, cash grants have been cut, and resettlement efforts have come to a halt. The UNHCR’s ability to provide aid to refugees has been severely compromised, exacerbating the already dire situation faced by displaced individuals worldwide.

The agency’s funding crisis is not an isolated issue, as other major donor countries have also reduced their contributions. This has left the UNHCR in a precarious position, with Grandi emphasizing that “no country, no sector, no partner, has been spared.” The reduction in funding has resulted in a substantial decrease in the agency’s ability to provide essential services, highlighting the need for urgent attention to address the growing displacement crisis globally. As the situation continues to unfold, it remains to be seen how the international community will respond to the UNHCR’s funding crisis and the escalating humanitarian needs of refugees worldwide.