The United Nations agency responsible for Palestinian refugees faces a critical funding gap that could force it to scale back operations serving millions of people across the Middle East, its chief warned Thursday.
Philippe Lazzarini, head of the UN Relief and Works Agency for Palestine Refugees (UNRWA), told the UN General Assembly's Fourth Committee that the organization confronts a shortfall of approximately $200 million between the end of 2025 and early 2026. He cautioned that projected revenues for the first quarter of next year will be insufficient to offset deficits carried over from this year.
"In the absence of a significant influx of new funding, the delivery of critical services to millions of Palestinian refugees across the region will be compromised," Lazzarini said during his address in New York.
The potential curtailment of UNRWA operations would reverberate across Gaza, the West Bank, Lebanon, Syria and Jordan, where the agency serves as a primary provider of health care, education and humanitarian assistance. In Gaza alone, UNRWA delivers 40 percent of all primary health care services and operates schools educating hundreds of thousands of children.
Lazzarini emphasized that maintaining current service levels may prove impossible without substantial new contributions, warning that any reduction would carry "grave consequences" for regional stability. The agency, he noted, remains "vital to the survival of millions of Palestinians" who depend on its programs for basic necessities.
The financial crisis stems from a sharp decline in contributions after Israel launched what UNRWA describes as a defamation campaign against the organization. Israeli officials alleged that agency staff members participated in the Oct. 7 attacks, prompting several major donors—including the United States—to suspend or pause their funding.
According to UNRWA, the agency has repeatedly requested that the Israeli government provide evidence supporting these allegations but has received no response. The suspended funding from key contributor nations has left the organization struggling to maintain its long-established operations across the region.
UNRWA was established in 1949 to provide assistance to Palestinian refugees displaced during the 1948 Arab-Israeli war and their descendants. The agency currently serves approximately 5.9 million registered refugees across its five areas of operation.