UNRWA Considers Major Restructuring Amid Financial Instability

The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is facing a significant restructuring that may lead to widespread layoffs and a shift in its responsibilities to alternative entities, including the U.S. President Donald Trump’s Board of Peace (BoP). This information comes from several media reports that reference diplomatic sources.

Financial Crisis Fuels Proposed Changes

Christian Saunders, the acting commissioner-general of UNRWA, is at the forefront of this proposed reorganization, prompted by an acute financial crisis. Reports suggest that the agency currently has a deficit estimated at around $70 million, raising the possibility of drastic measures to continue operations.

The Role of the Board of Peace

Established following a UN Security Council framework in November 2025, Trump’s Board of Peace aims to manage the transition in Gaza, focusing on governance, reconstruction, economic recovery, and humanitarian coordination. Notably, the BoP has expressed a clear stance against UNRWA’s ongoing operations. In a statement released on July 1, it asserted, “UNRWA has no place in the new Gaza,” emphasizing a break from what they describe as a cycle of dependency on aid and conflict.

Statements from the BoP

On September 25, the BoP reiterated its commitment to only collaborate with credible partners who meet criteria of effectiveness and accountability for the people of Gaza. They criticized UNRWA’s ability to fulfill these expectations, stating that “UNRWA fails on those litmus tests.” However, sources from the Associated Press reported that the BoP has conducted private discussions with UNRWA. A BoP representative suggested that some of the agency’s successful programs and vetted personnel might continue under new governance structures.

UNRWA’s Ongoing Challenges

UNRWA has long been under scrutiny from various entities, including Israel, the United States, and organizations like UN Watch. These criticisms often revolve around allegations of ties between some staff members and groups such as Hamas and Palestinian Islamic Jihad. Reports have surfaced highlighting a planned unravelling of the agency, although UNRWA continues to serve approximately 1.7 million Palestinians in Gaza by providing healthcare, education to around 300,000 children, and drinking water to about 820,000 people.

The Structural Shift Towards the Palestinian Authority

Discussions are currently underway regarding the transfer of some of UNRWA’s functions to the BoP and possibly to the Palestinian Authority (PA), located in the West Bank. This transition aligns with broader governance reforms intended to reshape control over Gaza.

Projected Future for UNRWA

In a recent meeting of UNRWA’s Advisory Commission, Saunders outlined the need for urgent financial support, warning of potential layoffs if funds are not secured soon. Presently, the agency has about 10,500 staff on the ground following reductions in personnel, including approximately 3,000 job losses or early retirements.

Conclusion

Under the proposed framework led by the BoP, transitional authority in Gaza will persist until the Palestinian Authority can effectively implement necessary reforms. A report from the Swiss daily newspaper Le Temps speculated on the possibility of UNRWA’s closure within the next four to five years. Nevertheless, this projection remains unverified.

Key Services Provided by UNRWA

• Healthcare for approximately 1.7 million Palestinians in Gaza
• Education services for around 300,000 children
• Provision of drinking water to approximately 820,000 individuals
• Support for nearly six million Palestinian refugees across Jordan, Lebanon, Syria, and the West Bank