woman standing in front of internally displaced site

Underfunding

Chronic underfunding continues to jeopardize UNHCR’s ability to fulfil its mandate, leaving millions of forcibly displaced and stateless people without critical support.

Read the latest report on underfunded operations:

Download the 2024 Underfunded Report

An extension camp set up by UNHCR at the Lushagala site for internally displaced people to meet housing needs in North Kivu province in the Democratic Republic of the Congo. © UNHCR/Guerchom Ndebo
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In 2025, underfunding will stop UNHCR providing essential services to millions of people. UNHCR’s budget of $10.604 billion reflects the anticipated needs of a record 139.3 million forcibly displaced and stateless people, but we are struggling to secure the funds required. 

As of the end of March 2025, UNHCR had funds available of $1.848 billion, or 17% of the budget, far less than is needed. This shortfall in funding runs counter to the reality of an increasing number of conflicts and crises that continue to displace populations at unprecedented rates. 

The consequences of underfunding are far-reaching. 

It hampers UNHCR's capacity to deliver life-saving protection and solutions such as asylum, registration, return or integration. It stops UNHCR from resettling child refugees and survivors of sexual assault. It endangers essential services such as cash assistance, shelter, water, sanitation, health care and education. Vulnerable people are cut off from the critical aid they need to survive and rebuild their lives. It also limits UNHCR's ability to respond to emergencies, exacerbating the plight of those caught up in unexpected conflicts or natural disasters. 

Although UNHCR works for refugees the world over, we have traditionally received the bulk of our funding from a small number of donors, whose budgets are increasingly stretched. Early pledges from governments and the private sector, such as those made at the pledging conference in December 2024, provide some predictability and flexibility, but those pledges cover only a little of the anticipated needs. 

The gap remains substantial, and support is needed – especially from governments with the power to help us diversify and sustain our funding. This situation calls for a renewed commitment from the international community to support UNHCR's mission and ensure that no one is left behind in times of crisis. 

Follow this page for regular updates on underfunding, and what UNHCR is doing to prioritize its response. Given the importance of flexible funding to UNHCR’s operations, please also refer to our dashboard on the use of flexible funding. 


 

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Underfunding and the value of flexible funding

As of March 2025, UNHCR has $646.5 million in flexible funding, equivalent to 35% of funds available. Of that, $406.6 million is unearmarked funding, equivalent to 63% of flexible funding and 22% of all funding available.  

Flexible funding – that is, unearmarked and softly earmarked funding – is crucial for UNHCR's underfunded operations. It provides the flexibility needed to allocate resources where they are most needed – in emergencies, in protracted crises, or in situations that are not in the spotlight. By ensuring neutrality and independence, flexible fundings strengthen UNHCR's ability to plan and implement effective humanitarian responses, ultimately making a significant difference in the lives of forcibly displaced people worldwide. With global displacement at record levels, predictable and flexible funding ensures life-saving aid – like shelter, healthcare, and protection – reaches the most vulnerable refugees and displaced people, even in underfunded crises.

flexible funding


An analysis of the allocation of flexible funding to these underfunded operations highlights their value. The top ten operations account for $4.402 billion, or 42% of the budget. These operations have been allocated $755 million, equivalent to 41% of available resources.  

Of the funds allocated, $243 million is in flexible funding, equivalent to 32% of funds available, and 38% of available flexible funding. 

The flexible funding includes $139 million unearmarked funding, and $104 million in softly earmarked funding.  

  • Lebanon is the largest recipient of flexible funding, with $48.5 million: this is 49% of funds allocated to the operation
  • Lebanon is also the largest recipient of unearmarked funding, with $32 million: this is 32% of funds allocated to the operation
  • Lebanon is as well the largest recipient of softly earmarked funding, with $16.5 million: this is 17% of funds allocated to the operation 

On average, these operations have been allocated $24.2 million in flexible funding; and on average, flexible funding accounts for 35% of their available resources.