Costa Rica Faces Refugee Crisis Amid Funding Cuts as Thousands Flee Nicaragua

Costa Rica has long held a reputation for its generous asylum policies and has played a leading role in regional cooperation on refugee matters.

Costa Rica is grappling with a worsening humanitarian crisis as the number of forcibly displaced people fleeing political repression and violence in neighboring Nicaragua continues to surge. The influx has stretched the country's asylum and support systems to breaking point, exacerbated by a staggering 41 per cent funding cut to the United Nations High Commissioner for Refugees (UNHCR) operations in the country. The shortfall threatens to derail years of progress in protecting and integrating vulnerable populations.

Growing Displacement from Nicaragua

Since the onset of socio-political turmoil in Nicaragua in 2018, Costa Rica has become a critical safe haven for thousands seeking refuge. As of March 2025, the country hosts more than 194,000 Nicaraguan asylum-seekers and 9,216 recognized refugees—accounting for over 50 per cent of all displaced Nicaraguans worldwide. These individuals now represent nearly 4 per cent of Costa Rica’s total population of 5.1 million and make up 83 per cent of the refugee and asylum-seeking population in the country.

This humanitarian influx continues unabated due to Nicaragua’s persistent civil unrest, authoritarian governance, and economic decline. For many fleeing persecution, torture, or poverty, Costa Rica represents the last viable option for survival and dignity.

A Tradition of Solidarity Meets Financial Constraints

Costa Rica has long held a reputation for its generous asylum policies and has played a leading role in regional cooperation on refugee matters. It has actively contributed to frameworks such as the Global Compact on Refugees, the Comprehensive Regional Protection and Solutions Framework (MIRPS), and the Quito Process, positioning itself as a moral and strategic leader in displacement response.

Through the support of UNHCR and international donors, Costa Rica has made commendable strides in integrating Nicaraguan refugees and asylum-seekers into society. Essential programmes have included:

• Legal aid and navigation support for asylum procedures

• Mental health services and trauma counseling

• Education access for refugee children

• Child protection initiatives

• Vocational training and employment matching

• Targeted support for women and high-risk groups in remote areas

These efforts have empowered many Nicaraguans to rebuild their lives and contribute meaningfully to host communities—working in agriculture, hospitality, construction, and small enterprises, often in regions suffering from labor shortages.

Critical Programmes at Risk as Funding Drops

However, this humanitarian success story now hangs in the balance. A 41 per cent funding cut has already forced the suspension or scaling down of many vital services. Legal assistance, education access, and mental health care are among the hardest-hit sectors. Crucially, many services no longer reach remote and underserved communities where refugees face heightened risks of exploitation, homelessness, or health crises.

The consequences are already visible. The ability of the asylum system to register new arrivals has plummeted by 77 per cent, causing major delays in documentation issuance. Without official recognition or paperwork, asylum-seekers are unable to work legally, access public healthcare, or enroll their children in school.

More than 222,000 asylum cases—many not from Nicaragua alone—remain pending. This backlog places enormous pressure on Costa Rica’s institutions and undermines the trust and safety that once defined its refugee response.

UNHCR's Role and Urgent Appeal for Global Support

UNHCR remains deeply committed to supporting Costa Rica, but its operations are severely constrained by funding shortfalls. The agency is urgently appealing for $40.4 million to sustain critical life-saving activities in 2025. This funding is essential not only to stabilize current programmes but also to prevent the collapse of protection systems that thousands of families depend on for survival.

The UN Refugee Agency calls on donor governments, philanthropic foundations, and individual contributors to step forward at this crucial juncture. Failure to act now could reverse years of investment in refugee integration, with long-term consequences for both displaced populations and host communities.

A Regional Responsibility, A Global Call to Action

Costa Rica cannot carry this burden alone. As the region contends with shifting patterns of forced displacement, global solidarity is needed to uphold international protection standards and human dignity.

This moment demands renewed leadership. The international community must reaffirm its commitment to shared responsibility for refugees by investing in solutions that allow displaced people not only to survive—but to thrive in places like Costa Rica that have opened their doors in good faith.

The humanitarian spirit of Costa Rica has remained steadfast. The question now is whether the global community will rise to meet its responsibility.