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Home » UN Chief warns millions of Palestinian refugees at risk as UNRWA faces critical funding crisis
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UN Chief warns millions of Palestinian refugees at risk as UNRWA faces critical funding crisis

Maryam SulaimanBy Maryam SulaimanJuly 2, 2026No Comments3 Mins Read
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United Nations Secretary-General Antonio Guterres has issued an urgent appeal to member states to bridge a $100 million budget deficit facing the UN agency for Palestinian refugees (UNRWA), warning that millions of lives hang in the balance.

Speaking at a donor conference on Tuesday, the UN chief highlighted that the agency’s operations are becoming increasingly unsustainable due to the severe financial shortfall and sweeping restrictions imposed by Israel across the occupied Palestinian territory.
“As we meet here today, the safety and welfare of millions of Palestine refugees hangs in the balance,” Guterres told attendees.

Guterres pointed to the “utterly appalling” living conditions in Gaza, escalating violence by Israeli settlers in the occupied West Bank, and ongoing military strikes in Lebanon, which hosts a significant population of displaced Palestinians.

“[UNRWA] faces sweeping restrictions throughout the occupied Palestinian territory.

And a cash shortfall that imperils its work across the region,” he stated, adding that deeper financial cuts could “push conditions beyond breaking point.”
Established by the UN General Assembly in 1949 following the displacement of Palestinians during the creation of Israel, UNRWA has already been forced to scale back its services.

The agency currently provides vital aid, education, healthcare, social services, and shelter to 2.6 million refugees across Gaza, the West Bank, East Jerusalem, Lebanon, Jordan, and Syria.
The financial strain intensified after the United States, formerly UNRWA’s largest donor, suspended its funding in January 2024.

The move followed unproven allegations by Israel that a small number of agency staff participated in the October 7, 2023, Hamas attacks. A subsequent investigation by the UN’s Office of Internal Oversight Services examined 19 accused employees, concluding that nine “may have been involved,” while finding no or insufficient evidence against the remaining 10.

Guterres emphasized that the funding gap directly threatens UNRWA’s ability to execute its mandate, which was overwhelmingly renewed by the General Assembly just six months ago.

“They cannot keep going like this without urgent backing and financial support from member states,” Guterres said. He noted that the agency has implemented decisive internal reforms and updated its regulations regarding external and political activities in the wake of the allegations.

“UNRWA is a stabilising force in an age of ⁠instability,” the Secretary-General asserted, condemning what he characterized as coordinated efforts to weaken the organization through “disinformation, smear campaigns, legislative actions, operational restrictions, diplomatic roadblocks and more.”

He warned that these disruptions endanger both vulnerable civilians and humanitarian personnel, noting that 390 UNRWA staff members have been killed by Israeli forces in Gaza since October 2023.

UN spokesperson Stephane Dujarric stated that the final tallies from the voluntary contributions meeting would be made public on Wednesday.
Also addressing the conference, Turkiye’s permanent representative to the UN, Ahmet Yildiz, stated that UNRWA is enduring unprecedented political hostility, operational blockades, and physical assaults on its personnel and facilities by Israel.

According to Turkish news agency Anadolu, Yildiz condemned Israel’s actions as “blatant violations of international law” intended “to deprive Palestinian refugees of their right to return to their land.”

Chief Palestinian UN
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