UNRWA faces potential shutdown and transfer of responsibilities

A plan to gradually phase out the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) is reportedly being developed. According to diplomatic sources, the proposal involves transferring the agency's functions to other institutions, specifically the Palestinian Authority in the West Bank and the Board of Peace in the Gaza Strip.

UNRWA's acting commissioner-general, Christian Saunders, presented the plan to the agency's Advisory Commission, citing severe financial difficulties. The agency is currently facing an estimated deficit of $70 million to $100 million, which represents approximately 10% of its annual operating budget. This fiscal crisis follows a sharp decline in contributions from both Western and Arab nations.

The agency has also faced significant legal and operational challenges in Israel, where new laws have banned its operations and prohibited contact between UNRWA and Israeli government bodies. While initial steps toward the transition have been approved, the proposal has met with strong opposition from Palestinian leadership.