UN’s Palestinian Refugee Agency Faces Financial Crisis after Funding Cut

UNRWA has embedded anti-Israeli and anti-Jewish messaging within its operations in Gaza.

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Sign of the area office of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) in Tyre/Sour, Southern Lebanon.

UNRWA has embedded anti-Israeli and anti-Jewish messaging within its operations in Gaza.

The UN Relief and Works Agency for Palestine Refugees (UNRWA) has called on international donors for urgent funding, warning that its operations could be severely affected without a cash infusion.

The agency—which no longer receives support from the United States—said it is operating week-by-week and may struggle to pay salaries beyond November, according to UNRWA chief Philippe Lazzarini.

Israel has barred UNRWA from operating on its territory, citing evidence that some employees were involved in the October 7th, 2023 Hamas terrorist attack, which sparked the most recent Gaza conflict.

The U.S.—historically UNRWA’s largest donor—suspended its contributions. In response, UNRWA repatriated international staff from Gaza and the West Bank.

Despite these restrictions, the agency continues to employ around 12,000 staff in Palestinian territories. 

UNRWA projects a budget shortfall of roughly $200 million (€172 million) between the last quarter of 2025 and the first quarter of 2026. 

Observers have linked UNRWA’s continued operations to the embedding of anti-Israeli and anti-Jewish messaging, for instance in its educational provision.

UNRWA’s presence in Gaza remains closely tied to Hamas’ influence. Hillel Neuer, executive director of UN Watch, highlighted the agency’s hiring of “Hamas terror chiefs” to run Gaza’s education system and its high-level celebrations of the October 7th pogrom. According to Canadian writer Mike Fegelman,

There is no chance for peace when a population is taught to hate and revere death.

Despite this, the European Commission handed €52 million of taxpayer cash to the agency in June, and moving forward is likely to continue supporting its work.

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