US Presses Donors to Cut UNRWA Funding as UN Defends Gaza Aid Agency’s Lifeline

The United Nations pushed back against U.S. criticism of its call for continued international funding for the United Nations Relief and Works Agency for Palestine Refugees in the Near East, known as UNRWA. Washington has urged donors to move away from the agency, arguing it has been compromised by Hamas, and instead channel support toward the Security Council-backed Board of Peace.

At UNRWA’s annual pledging conference in early July, U.S. Ambassador Jeff Bartos delivered a sharp rebuke of the agency and the governments that continue to fund it. He accused member states of returning to a strategy he described as repeatedly ineffective and alleged that UNRWA had become a “subsidiary of Hamas.”

“Doing the same thing over and over, expecting a different result is the definition of insanity,” Bartos said. “And yet, here we are again, another annual pledging conference for UNRWA. Same speeches … same condemnation of Israel, same failures to condemn Hamas.”

Bartos called on governments to halt support for UNRWA-run schools in Gaza, claiming they promote hostility toward Jews and praise terrorism. He also pointed to allegations that some UNRWA staff members took part in the Hamas-led Oct. 7, 2023, attack on Israel.

“You can choose to fund incitement, terrorism and stagnation, or you can choose to fund the Board of Peace, giving Gazans a path to peace, prosperity and real, durable change,” Bartos said.

The Board of Peace is a U.S.-led body established under President Donald Trump’s Gaza plan to guide transitional governance, reconstruction and long-term development in coordination with a Palestinian technocratic administration. U.S. officials say the framework provides a more accountable alternative to UNRWA by redirecting assistance away from what they describe as a Hamas-infiltrated system and toward economic recovery and stable governance.

Asked by INC News why U.N. Secretary-General António Guterres was asking countries to put additional money into UNRWA rather than support the Board of Peace, U.N. spokesman Stéphane Dujarric defended the agency’s record and mandate.

Dujarric said Wednesday that UNRWA officials, including former Commissioner-General Philippe Lazzarini and acting chief Christian Saunders, had taken “strong action” when presented with facts concerning possible infiltration by people aligned with terrorist organizations.

“UNRWA doesn’t operate through a sort of immaculate conception,” Dujarric said in a press briefing. “It is there because there is a mandate given to it by the General Assembly, and we continue to fulfill that mandate. It has a very important role to play on the humanitarian front.”

Dujarric added that the Security Council resolution supporting the Board of Peace also calls on the United Nations to deliver humanitarian assistance and lead humanitarian activities in Gaza.

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“UNRWA is part of that system,” he said.

The U.S. position contrasted sharply with those of several European governments.

At the same pledging event, the United Kingdom announced £23 million in support for UNRWA. 

British Ambassador James Kariuki called the agency “indispensable” to providing essential services to Palestinian refugees across Gaza, the West Bank, Syria, Lebanon and Jordan.

France also reiterated what its representative described as “full support” for the agency, saying UNRWA continues to provide indispensable assistance despite growing obstacles. France said it had provided €123 million to UNRWA since 2023 and would announce its 2026 contribution soon.

The French representative said allegations against UNRWA had been taken seriously and argued that the agency was implementing recommendations from the Colonna review intended to strengthen neutrality and transparency. France also supported an eventual, gradual transfer of UNRWA’s responsibilities to reform and strengthen Palestinian institutions as part of a broader political settlement.

The funding dispute comes as UN Watch is demanding that Guterres waive any immunity enjoyed by Lazzarini, whose term has ended, so national authorities can investigate allegations that he ignored repeated warnings about Hamas infiltration.

In a June 30 letter, the Geneva-based watchdog claimed that it had provided Lazzarini and his administration with evidence involving teachers, school principals, union leaders and other employees who allegedly supported or were affiliated with Hamas and other terrorist groups. It argued that the claims create grounds for an independent criminal investigation.

Hillel Neuer, executive director of UN Watch, told INC News that his organization told Lazzarini “that there are supporters of terrorism — in some cases, actual members of Hamas — working as teachers, working as school principals,” Neuer said, “Not one bad apple, not a few rotten apples, but the problem of support for terrorism … was systematic.”

Neuer said waiving Lazzarini’s immunity would not amount to a finding of guilt but would allow prosecutors to test the evidence.

“The investigation may prove there’s no evidence, and it’s over,” Neuer said. “But at least you should waive immunity to allow an investigation. The U.N. said that if anyone was found involved, ‘we will cooperate.’ Now is the test.”

Asked whether Guterres would consider waiving Lazzarini’s immunity, Dujarric did not answer directly.

“As far as I know, UN Watch is not a judicial authority,” he said. “We have always, as a matter of principle, cooperated with investigations by national authorities.”

UN Watch’s letter argues that immunity exists to protect the interests of the United Nations rather than provide a personal benefit to an official, and that it should be waived where it would obstruct justice without harming the organization.

INC News contacted UNRWA for comment but did not receive a response.