Guterres Warns U.N. Agency For Palestinian Refugees Nearing ‘Breaking Point’

June 30 (Reuters) – U.N. Secretary-General Antonio Guterres on Tuesday called on countries to close a $100 million funding gap for the U.N. Palestine Refugee Agency, UNRWA, saying the agency is nearing breaking point after deep cost-cutting and austerity measures.

Guterres told a special meeting of the General Assembly on voluntary contributions that UNRWA’s situation was becoming increasingly precarious, given the extensive restrictions preventing its work in the occupied Palestinian territories and the huge cash deficit.

The United Nations agency operates in Gaza, the West Bank, Lebanon, Jordan and Syria, providing aid, education, health, social services and housing to 2.6 million Palestinians.

The United States was UNRWA’s largest donor, but cut funding in January 2024 after Israel accused nearly a dozen UNRWA staff of participating in a deadly attack by Hamas militants that triggered the war in Gaza on October 7, 2023. Sweden also cut its 2025 funding. Other major donors halted funding to UNRWA while Hamas’s accusations were investigated, but most continued their contributions.

Guterres said the agency’s liquidity crisis jeopardized its ability to fulfill its mandate, which was renewed by the General Assembly six months ago with overwhelming member support.

“They cannot continue this way without urgent support and financial support from member states,” said Guterres, noting that the institution has taken decisive steps to implement reforms and update its policy on foreign and political activities after Israel’s accusations.

“UNRWA is a stabilizing force in an age of instability,” he said, rejecting ongoing efforts to undermine the agency through what he called “disinformation, smear campaigns, legislative actions, operational restrictions, diplomatic roadblocks and more.”

Saying that such actions threaten the well-being of millions of Palestinians and UNRWA personnel, Guterres noted that 390 UNRWA personnel have been killed in Gaza since October 2023. He noted that 1,000 Palestinians have been killed in Israeli attacks since the ceasefire declared in October.

The UN said it had fired nine UNRWA staff who may have been involved in the October 2023 attack that killed nearly 1,200 Israelis and foreign nationals. It was revealed that a Hamas commander in Lebanon, who was killed by Israel in September, also served in UNRWA. The UN disputed its links to Hamas and promised to investigate all accusations.

Stating that UNRWA has reduced service delivery hours by 20% this year, cut the salaries of local staff and kept 15% of international positions vacant, Guterres said, “Further cuts could push conditions beyond the breaking point.”

UN spokesman Stephane Dujarric said the agency was facing an existential crisis. The results of a special meeting on voluntary contributions will be announced on Wednesday, he said.

UNRWA received approximately $887 million in donations and $829 million in contributions in 2025, according to its website; This amount constitutes only 27% of the total financing need of $3.3 billion.

(Reporting by Andrea Shalal; Editing by Paul Simao)