UN Secretary-General António Guterres is warning once again of the potential collapse of UNRWA, the UN agency for Palestinian refugees, following a new report highlighting a severe budget crisis caused by frozen U.S. donations, Israeli legislation and an ongoing campaign against the agency. Israel’s UN Ambassador Danny Danon responded to Guterre's warning: “This is not a breaking point, but a failure—it's time to shut down this failing agency.”
Guterres in a letter on Monday expressed deep concern that UNRWA may be forced to cease operations as early as August if it does not immediately receive $200 million in funding. Attached to the letter, titled "An Unprecedented Breaking Point," was an in-depth report detailing the agency’s worsening financial deficit and citing political factors as exacerbating the crisis.
Key factors mentioned include the suspension of donations from the U.S. and Sweden, as well as actions by the Israeli government, which the report accused of leading a “disinformation campaign” that harmed the agency’s reputation and fundraising capabilities.
The report specifically referenced Israeli legislation that came into effect in January 2024, which bans UNRWA from operating in East Jerusalem, and the resulting breakdown in communication between Israeli government officials and UNRWA representatives. The law was enacted following allegations that UNRWA personnel were involved in the October 7 Hamas-led massacre. According to the report, these combined circumstances severely undermine UNRWA’s operational capacity and threaten its continued existence.
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Israel's UN ambassador Danny Danon; UN Secretary-General Antonio Guterres
(Photos: Alaa Al-Sukhni/Reuters, Angele Weiss/ AFP)
The Secretary-General urged UN member states to fulfill their financial commitments and to reinstate suspended donations in order to preserve UNRWA as “a key mechanism for regional stability” and a major actor in addressing the humanitarian fallout of the war in Gaza.
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In response, Ambassador Danon harshly criticized both Guterres and UNRWA: “This is not an 'unprecedented breaking point' but the result of a loss of trust in UNRWA, which operates as a civilian arm of Hamas. Instead of blaming Israel, the Secretary-General should recognize that it’s time to shut down this failing agency.”
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Terrorist bombs found in Jabaliya inside and UNRWA sack
(Photo: IDF Spokesperson's Unit)
Danon has previously exposed multiple instances of UNRWA employees’ involvement in terror activities, including cooperation with Hamas and direct participation in the October 7 massacre, as reported in official documents since the war began. “Hamas and other terror organizations infiltrated UNRWA long ago,” Danon has said.
This is not Guterres’s first warning regarding UNRWA’s viability. Just one day after Israel passed the law restricting the agency’s operations, he sent a letter to Prime Minister Benjamin Netanyahu, warning that the legislation could have “devastating” consequences. “The laws may prevent UNRWA from continuing its essential work in the occupied Palestinian territory—including the West Bank, East Jerusalem, and Gaza—and could lead to devastating consequences for Palestinian refugees, given that there is currently no viable alternative to provide the necessary services and aid,” Guterres wrote.