August 31, 2026: The United Nations refugee agency, UNHCR, is preparing to cut its 2027 budget by 16% and eliminate around 3,500 positions, even as the number of displaced people worldwide is expected to approach a record 140 million.
According to a Reuters report published Friday, UNHCR has set a proposed budget of $7.14 billion for 2027, marking its lowest proposed budget in the past decade. The revised budget and operational plan were presented at a meeting of representatives from the agency’s member states in Geneva.
The agency’s worsening financial situation has been driven largely by reductions in foreign assistance from major donors, including the United States. Reuters reported that cuts in funding from the administration of U.S. President Donald Trump and other major donors have reduced UNHCR’s budget and operational capacity to roughly one-third of their previous level compared with 2025.
However, not all of the approximately 3,500 positions targeted for elimination are necessarily currently occupied, according to a UNHCR spokesperson. The agency has historically had a significant number of authorized positions that remained vacant. As a result, the actual number of employees who could lose their jobs may be substantially lower than the total number of positions being eliminated.
UNHCR has already introduced a series of cost-cutting measures in response to its financial difficulties. Following a major funding shortfall in 2025, the agency has reduced its workforce and closed an office in southern Africa. It is also planning to move its headquarters in Geneva to a less expensive building as part of broader efforts to reduce operating costs.
UNHCR chief Barham Salih has expressed hope that the agency’s partnership with the United States will continue. Washington has historically been one of the organization’s largest donors, although its financial contribution has fallen sharply in recent years.
According to the report, UNHCR received $800 million from the United States in 2025. That contribution has fallen to just $110 million this year, highlighting the scale of the agency’s funding crisis.
The proposed budget reductions are expected to have a particularly significant impact in several regions. Funding for the Americas is set to fall by nearly one-third, while allocations for the Asia-Pacific region are expected to decline by 22%. The reduction will also affect assistance to Rohingya refugees sheltering in Bangladesh.
Funding for West and Central Africa, where humanitarian needs have intensified amid crises including the conflict in Sudan, is also expected to fall by 21%.
The budget cuts come at a time when global displacement is continuing to rise as conflicts in countries such as Ukraine and Sudan force millions of people from their homes. UNHCR projections indicate that the number of displaced people worldwide could reach 131.2 million in 2027.
The growing gap between humanitarian needs and available funding has raised concern among countries hosting large refugee populations, including Bangladesh and Uganda. For Bangladesh, which has been hosting a large Rohingya refugee population for years, further reductions in international assistance could create additional pressure on already strained humanitarian operations.
The proposed budget is scheduled to be submitted to UNHCR’s Executive Committee for final approval in October. If approved, the new budget will formally take effect thereafter.
Source: Reuters