Funding Crisis Threatens UNRWA's Vital Services

The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is facing a severe cash flow crisis that could lead to an unprecedented reduction in services. With a staggering $200 million deficit, UNRWA's chief, Philippe Lazzarini, warned of potential decisions that could drastically impact Palestinian refugees.

Previously the top donor, the United States significantly cut its contributions under the Trump administration. This, combined with worldwide defense spending increases prompted by the ongoing Ukraine conflict, has pressured budgets of other Western governments, further straining UNRWA's funding sources.

The agency narrowly avoided suspending 10,000-15,000 staff due to last-minute donor aid but remains financially uncertain beyond September. While UN Secretary-General Antonio Guterres seeks strategic assessment and protections for refugee rights, Israel halts UNRWA operations, citing Hamas links amid accusations and calls for evidence.

(With inputs from agencies.)