Monday, 19 May, 2025
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The US has been the UNHCR’s largest donor, contributing over 40% of its funding. The Trump administration’s cutback created a significant shortfall, forcing the agency to reduce operations amid record global displacement.
The UN refugee agency (UNHCR) is staring down a 66 per cent budget cut in 2025, plunging from $5.17 billion to just $1.75 billion—a staggering rollback largely tied to the Trump administration’s pullback on humanitarian aid. The timing couldn’t be worse: global displacement is at record highs, and the funding collapse threatens to cripple core refugee support systems.
The consequences will be immediate and far-reaching—fewer camps, slashed medical services, disrupted schooling, and worsening conditions in conflict zones where the UNHCR often serves as a last resort.
Emergency appeals are inevitable, along with urgent diplomatic outreach to alternate donors. Nations such as Germany, Japan, and the Nordics may be asked to bridge the gap, while Washington risks ceding its traditional leadership in global humanitarian efforts. For millions of displaced people, the near-term outlook is stark: diminished aid and deepening uncertainty.
India’s lack of a national refugee law leaves more than 47,000 refugees and asylum seekers—many Rohingyas and Afghans—dependent on the UNHCR for critical aid. But with the agency facing a sharp funding cut in 2025, core services such as documentation, healthcare access, and education support are under threat.
As the UNHCR’s global budget collapses, its operations in countries without legal refugee protections, like India, face especially dire consequences—risking widespread hardship, legal limbo, and heightened vulnerability for some of the world’s most marginalised people.
Since Donald Trump took office in January, humanitarian groups have been in crisis mode. His administration’s hardline stance against refugees and migrants began with a sweeping freeze on most US foreign aid—sending shockwaves through global relief networks.
The US has historically been the UNHCR’s top donor, providing more than 40 per cent of its total funding. The Trump-era pullback created a massive shortfall, forcing the agency to scale back operations just as global displacement hits record levels.
The consequences are already unfolding for frontline workers and displaced populations—and the worst may still be on the horizon.
Nearly 10 lakh Rohingya refugees in Bangladesh are confronting a severe health crisis, as funding freezes jeopardise their access to vital medical services. In Burundi, the suspension of nutrition programmes in multiple refugee camps is putting thousands of children under five at risk of inadequate treatment for malnutrition.
The UNHCR is grappling with a severe funding gap, with contributions for 2023 and 2024 falling 60 per cent short of the $21.7 million needed. For 2025, the required funding decreases to $17.3 million, but the US contributions have sharply declined.
In 2024, the US provided $2.05 billion globally. However, for 2025, this amount plummets to just $268 million—an 87 per cent reduction. In India, American funding has dropped from $3.49 million in 2024 to an expected $580,554 in 2025, marking an 83 per cent decrease.
These cuts have led to layoffs at the UNHCR’s India office and are expected to severely limit field operations, putting thousands of refugees at greater risk, according to several media reports.
India, not a signatory to the 1951 Refugee Convention or the 1967 Protocol, provides only limited formal protection to refugees. Without a national refugee law, the country’s treatment of asylum seekers varies, and their rights often go undefined.
Certain groups, such as Rohingya Muslims, are labelled as “illegal immigrants”, despite being recognised as refugees by the UNHCR. This classification exposes them to detention and deportation risks, heightening their vulnerability.
Though India has historically hosted significant refugee populations, including Tibetans, Sri Lankan Tamils, and more recently, Afghans, the absence of legal frameworks or protections leaves these groups in a state of uncertainty—particularly as the UNHCR faces a severe funding shortfall.
