Despite record $100 million shortfall, Palestine relief agency still ‘a critical platform’ for Gaza recovery
UNRWA Faces $100 Million Funding Gap Amid Gaza Recovery Efforts
Despite record 100 million shortfall Palestine - The United Nations Relief and Works Agency for Palestine Refugees (UNRWA) continues to serve 5.9 million displaced Palestinians, despite encountering a significant budget deficit of $100 million. This shortfall is expected to be addressed at a fundraising event held at the UN headquarters on Tuesday, though the agency remains essential for sustaining recovery in Gaza.
Since its establishment in the 1940s, UNRWA has depended on donations to provide critical services such as education, healthcare, and vaccinations. The agency is described by the UN as a “lifeline” for Palestinian communities, ensuring stability amid regional turmoil. However, the Secretary-General, António Guterres, expressed worries about the financial strain, stating that the shortfall could have severe consequences for the entire area.
“UNRWA is a stabilising force in an age of instability, registering, protecting and assisting highly vulnerable populations and countering the hopelessness that can fuel insecurity,” he said.
Conflict Impact and Funding Challenges
Following the Hamas attack on Israel in October 2023, which caused over 1,200 casualties and 250 captives, and subsequent Israeli military operations that devastated Gaza, the situation has worsened. Over 80% of the population has been displaced, with at least 70,000 fatalities reported. During this period, UNRWA facilities have been targeted, leading to the deaths of 390 staff members and attacks on schools and hospitals.
Despite these challenges, the agency has maintained its operations. Yet, the recent allegations of staff involvement in attacks on Israel have sparked debates about its role. While most nations have resumed funding, the United States remains an exception. The gap between pledged and received funds persists, complicating efforts to meet operational needs.
Financial Struggles and Pledges
Member states meet annually to support UNRWA, but commitments often fall short of actual support. In 2025, for instance, $878 million was pledged, yet only $839 million was received, a recurring issue in 2024 as well. Guterres stressed the urgency of member state backing, noting that the financial crisis threatens UNRWA’s ability to execute its mandate, which was reaffirmed by the General Assembly six months prior.
“They cannot keep going like this without urgent backing and financial support from Member States,” Mr. Guterres said, adding that the liquidity crisis also jeopardises UNRWA’s ability to implement its mandate, given by the General Assembly and renewed six months ago with overwhelming Member State support.
Despite ongoing criticism, UNRWA has taken steps to address concerns. The agency has already acted on more than 40 recommendations from the 2024 Colonna report, demonstrating its commitment to transparency. Christian Saunders, the acting head of the agency, emphasized that UNRWA’s services remain vital, even as funding shortfalls have forced reductions in service delivery.
“UNRWA is a critical platform for recovery, institutional stability and lasting peace,” he said, underscoring that its capacities are “vital” for implementing Security Council resolution 2803 (2025) and the Trump Declaration for Enduring Peace and Prosperity.
Annalena Baerbock, President of the UN General Assembly, noted that UNRWA was created in 1948 to support Palestinians until a state was established. She reiterated the agency’s importance, stating that its work remains indispensable until the two-State solution is achieved.
“A Palestinian State means that UNRWA is no longer needed,” she said. “Until that day comes, let us never stop working for the two-State solution and let us never stop supporting UNRWA.”
Continuity Amid Crisis
Even with funding constraints, UNRWA continues to operate, providing essential aid to nearly 1.7 million people in Gaza. With the ceasefire in place for eight months, the agency’s role in offering shelter, food, and healthcare remains unchanged. However, the growing needs of the population, still living in tents and shelters, highlight the urgency of sustained support.