Underfunding Report 2026
Underfunding Report 2026
The result of reduced funding is that vulnerable people risk being exposed to violence, exploitation, exclusion and limited access to basic necessities. In times like these, when record high number of people are living in insecure conditions, fundings is more important than ever.
Annika Sandlund, UNHCR Representative for the Nordic and Baltic countries, reflects on the impact of reduced fundings:
“Humanitarian action is largely about problem solving. As humanitarians we are used to triage, to see who is most in need and help the most vulnerable first. The funding crises of today is so deep that there are locations where as opposed to trying to assist as many as possible, we are simply unable to help anyone”.
How will vulnerable people be affected by reduced funding?
One alarming consequence of the funding cuts is that hundreds of thousands of women and girls are at risk of being exposed to gender-based violence (GBV), while survivors risk losing access to support and assistance that would normally be provided by UNHCR. Displaced and stateless people, in particular, face a greater risk of being exposed to GBV, which can seriously affect their well-being. When safe shelters and specialized support services shut down, survivors are left with the consequences of violence, making it more difficult for them to rebuild their lives after the devastation. In Chad, for example, 200,000 women and girls may lose access to safe spaces and prevention programmes, which is exposing them to violence, trafficking and exploitation.
Furthermore, children, particularly displaced children, may also be affected by reduced funding during their core development, with consequences for their mental well-being. If the funding deficit continues, there is a risk that family tracing, education, and child protective services risk cannot be offered. As an example, around 233,000 children in Chad are at risk of losing access to life-saving child protection services, while only 14,000 children out of the planned 95,000 will have access to justice services in Ethiopia.
Hundreds of thousands of displaced people risk losing access to documentation and registration - essential requirements for people crossing boarders to obtain legal status and refugee assistance within the country. Without documentation, people cannot access life-saving humanitarian aid, safe long-term solutions, psychosocial support, or benefit from the national systems. A concrete example of this is that due to funding shortages, UNHCR is unable to promptly register the large number of people from the Democratic Republic of the Congo (DRC) who have been forced to seek protection in Burundi. As a result, around 160,000 people are waiting for registration, leading to continued hardship in displacement as they are not provided with assistance without registration.
The funding situation affects not only the people themselves but also host countries, whose recourses to receive people, identify those in need of protection and provide stability are under pressure. A clear example of this is the current asylum system in Kenya, where support to the government and support from UNHCR have decreased, resulting in around 229,000 asylum-seekers waiting to receive asylum status. The problem is not only the number of people waiting for asylum, but also the waiting time itself. The waiting time is estimated to be 3.5 years, meaning 3.5 years of limited access to healthcare, work permits, protection services and inclusion opportunities.
From a long-term perspective, limited access to documentation means that displaced people become more dependent on humanitarian assistance. The reality of remaining without legal status means having no opportunity to rebuild their own lives by working, earning money, studying, and living independently. Displaced and stateless people living independently benefits everyone, the displaced persons themselves and the local economies of host countries. Documentation that helps people find work also strengthens social cohesion and reduces pressure on humanitarian assistance. Being denied access to livelihood opportunities on legal grounds can contribute to vulnerable people choosing other means of survival, which may involve destructive coping mechanisms such as child labour, early or forced marriage, survival sex and unsustainable debt. Normally, this is an area where UNHCR can assist, however, today some 350,000 refugees and asylum-seekers risk losing access to economic inclusion interventions in Iraq.
What does delayed documentation mean in practice? Annika Sandlund, UNHCR Representative for the Nordic and Baltic countries, explains:
“Our registration services and immediate assistance to persons who have been traumatized is a first step to restore dignity. Without an ID document, you normally cannot access any services or get humanitarian assistance, such as food or blankets that are provided by different NGOs. With every agency struggling with limited resources, everyone wants to make sure they help the most vulnerable first and that everyone is provided with assistance on an equal basis. Without registration and documentation, life goes into a limbo-zone with no assistance and also no idea of what the next steps might be”.
The consequence of remaining without legal status for days, weeks, and years is that displaced people may be forced to return to their countries of origin, even when these countries are still unsafe. Today, while some returns are voluntary, others are based on deportations or return in adverse conditions, such as this year's mass returns to Afghanistan from the Islamic Republics of Iran and Pakistan. Returns to Afghanistan have also become less sustainable as funding has decreased, considering that cash assistance to returnees has been reduced from $375 per person to just $170 per household. A low level of support for returnees makes it more difficult for them to rebuild their lives and meet their most basic needs. Once they arrive in their home communities, further difficulties may await them, as the home communities have limited economic opportunities, while women face a particularly vulnerable situation due to severe restrictions on work and education.
UNHCR’s Underfunded Report is not a warning for the future, but a situation we are already facing right now. UNHCR’s life-saving systems, which took years to build, are now at risk falling apart bit by bit as a result of drastic funding reductions over the past two years, leaving millions of people at risk of being without the most basic necessities. Available resources are under severe pressure, and in order to provide people with life-saving humanitarian assistance, UNHCR is in need of increased unearmarked funding to be able to distribute resources where they are most needed.
“This report shows how the funding cuts are hitting the most vulnerable, including women and children who have been forced to leave their homes and who may already have lost hope. UNHCR staff are at the borders, in the refugee camps, and in places where other actors do not have access. Providing funding to UNHCR helps us help those who find themselves in hard-to-reach places without anyone else to turn to”, summarizes Annika Sandlund, UNHCR Representative for the Nordic and Baltic countries.
Read Protection Eroded: The Human Cost of Underfunding 2026 here:
