Opinion

Bridging the Funding Gap

A guest editorial from Impact Europe member IOM brings an insider’s perspective to the global humanitarian and development funding crisis. By Stephanie Dei, Head of Private Sector Partnerships Division, International Organization for Migration, IOM – UN Migration. 

Stephanie Dei |
Bridging the Funding Gap

Why the Drastic Cuts to International Funding Demand Urgent Action

 In times of crisis, every second counts. Right now, a mother fleeing conflict is stranded at a border with no support due to funding cuts. A displaced family is forced onto the streets as shelters shut down. A refugee awaiting resettlement is told their case is on hold and returned to an uncertain future in the refugee camp.

Food aid is slashed. Shelters are closing. Emergency medical care is stretched beyond capacity.

We are facing a global humanitarian and development funding crisis, threatening lifesaving services for millions. The gap between urgent needs and available resources has never been wider – and it’s growing. Without immediate action, the most vulnerable will bear the heaviest burden.

Displacement Figures at a Glance

Migration is a defining feature in our interconnected world. Today, more than 304 million people – around 3,7% of the world’s population – live outside their country of origin. Among them, an estimated 168 million are migrant workers, 6.8 million are international students and 43.4 million are refugees and other displaced people.

While the vast majority of migration is safe, orderly and regular, displacement is rising at an alarming rate. Over the past five years, conflicts, humanitarian crises and climate-related disasters have driven a 50% surge in the number of internally displaced persons (IDPs). By 2023, a record 75.9 million people across 116 countries were living in internal displacement, with at least 50 nations reporting displacement crises lasting over a decade.

These stark figures underscore a critical challenge: while many migrate by choice, millions are forced from home due to war, climate disasters and economic collapse. As displacement becomes increasingly protracted, urgent action is needed — not only to provide immediate relief but to address the root causes and create sustainable solutions for those forced from their homes.

 

A World on the Brink

The current humanitarian landscape is rapidly deteriorating, with conflicts, climate shocks and economic instability pushing millions into situations of extreme vulnerability. Sudan now faces the world’s largest displacement crisis, with 11.5 million people forced from their homes and over 30 million — half the population — in urgent need of aid. Basic infrastructure is collapsing, famine has been declared in several areas and cholera has spread to 11 states, compounding the suffering.

Meanwhile, three years into the full-scale invasion of Ukraine, nearly a third of the population requires humanitarian support. Of the 3.7 million IDPs, nearly two-thirds have been away from home for over two years, struggling with limited income opportunities, rising food insecurity and medical shortages. Tens of thousands continue to flee frontline areas each month, primarily in the east and northeast, making sustained humanitarian assistance critical.

With severe budget constraints, millions on the move worldwide are left without the support they urgently need. IOM remains committed to providing lifesaving services and solutions to displacement as efficiently as possible, but in this new era of shrinking resources, collaboration is crucial.
 

The Cost of Inaction: A Threat to Millions

There is a growing, constant and overwhelming demand for lifesaving assistance worldwide. The reality is that no single actor can meet these needs alone.

Due to sudden shifts in crucial international funding, IOM, like many other organizations, is now faced with a severe funding gap, putting at risk operations that support the most vulnerable. These funding cuts jeopardize our work under all of IOM's three strategic pillars: saving lives and protecting people on the move, driving solutions to displacement, and facilitating pathways for regular migration.
 

What’s at Stake

Without urgent funding, key humanitarian programs will be drastically reduced or lost entirely, leaving millions without food, shelter, medical aid and protection. Lifesaving support for victims of trafficking and exploitation will no longer be guaranteed.

Our operations globally will suffer the consequences. Entire programs have already been partially or completely suspended, cutting off critical services for displaced populations. The human cost is catastrophic; without intervention, millions will face deteriorating health, homelessness, food insecurity and heightened exposure to violence and exploitation.

For example, in Afghanistan, funding cuts will disrupt essential humanitarian services, including healthcare, protection, shelter, water, sanitation, hygiene and winterization assistance, worsening economic and security conditions for vulnerable Afghans. In Poland, funding reductions will impact thousands in collective shelters, increasing risks of homelessness, exploitation and unsafe returns to Ukraine, straining both local resources and long-term recovery efforts.

Further economic pressures will have direct, life-threatening consequences. Men, women and children will lose access to healthcare, food, water, shelter and education — necessities for survival and dignity. As humanitarian needs escalate, already fragile settings will descend further into crisis, requiring even greater resources to prevent long-term instability.
 

A Call to Action: Help Us Bridge the Gap

The humanitarian system is at a breaking point — millions displaced, critical funding drying up and lifesaving aid at risk. At IOM, we are taking action, optimising operations and maximising impact, but we can't do this alone.

We are appealing to the private sector to help us sustain our most urgent operations. Your support can help us continue to deliver lifesaving assistance to those in need, including shelter, healthcare and basic services.

Why Your Support Matters

Sustain lifesaving aid – Provide shelter, food, water and healthcare to those most in need.

Invest in solutions – Support skills training, labour mobility and regular migration pathways to help people rebuild.

Strengthen economies – Migration fuels growth, innovation and workforce development.

 

We are calling on business leaders, philanthropists and foundations to step up and bridge this funding gap. Collective action matters. Right now, millions of migrants and displaced communities are at risk of being left without a support network to help them rebuild their lives. Their survival depends on the choices we make today.

Take action today. Join us. Partner with us. Invest in solutions. Help us bridge the gap before it’s too late.

Partner with IOM to support people on the move: privatepartnerships@iom.int.