Israel's war on Gaza: What is Unrwa and why has its funding been cut?

Unrwa, a UN agency, is the primary source of humanitarian support for Palestinians in Gaza and the wider region.

However, it has come under sustained military, financial and diplomatic attacks since Israel's war on Gaza began on 7 October. The UK government has followed other countries by restoring funding suspended earlier in 2024. However, the US, formerly Unrwa's main donor, has yet to do the same.

When was Unrwa created and why?

The UN Relief And Works Agency for Palestinian Refugees in the Near East (Unrwa) was established by the UN as a subsidiary organisation on 8 December 1949, after the Arab-Israeli war that erupted following the creation of the state of Israel the previous year.

An estimated 750,000 Palestinians fled or were forced from their homes amid violence by Zionist groups - an event commemorated as the Nakba, Arabic for "catastrophe."

In May 1950, Unrwa began operations among Palestinians in Jordan, Syria, Lebanon, the West Bank (then under Jordanian control) and Gaza (then under Egyptian control). In its early years, it also served refugees in Israel.

Unrwa's mandate, which is renewed every three years under General Assembly Resolution 302 (IV), is to carry out relief programmes for Palestinian refugees.

In 1952, UN General Assembly Resolution 194 defined Palestinian refugees as "persons whose regular place of residence was Palestine during the period 1 June 1946 to 15 May 1948, and who lost both home and means of livelihood as a result of the 1948 conflict".

The agency has been based in Gaza since 1996 as part of a UN move to demonstrate support for the peace process.

Since then, Unrwa operations have grown considerably. An estimated 5.9 million Palestinian refugees are now registered as eligible for aid.

Its commissioner-general since March 2020 has been Philippe Lazzarini of Switzerland.

What does Unrwa do?

Before the war, the agency had an estimated 30,000 employees, and about one-third of them were based in Gaza. The vast majority were Palestinians working in schools, health services or construction and infrastructure work.

More than half of Unrwa's budget in 2020, the latest date for which figures are available, was spent on education. This was followed by 15 percent on health, 13 percent on support services, 6 percent on relief and social services and 4 percent on infrastructure and camp improvement. Its primary areas of work include:

Education: Unrwa says more than 2.5 million Palestinian refugees have graduated from its schools since the 1950s. During the 2021 to 2022 school year, an estimated 545,000 children were enrolled in its schools.

Before the war, it ran more than 180 schools in Gaza, attended by more than 285,000 students. It also operated nine technical and vocational training centres, from which more than 123,000 young people have graduated since 2021.

Health services: In Gaza in 2021, Unrwa had 22 health facilities and seven women’s centres, registering an average of 3.4 million visits per year. 

Relief and social services: Its Social Safety Net programme, Unrwa says, served almost 400,000 refugees; 1.7 million received life-saving humanitarian assistance, including Palestinians affected not only by the impact of Israeli policy but also caught in the conflict in Syria and the ongoing economic crisis in Lebanon.

Finance: The agency also provides seed money and other small loans to encourage refugees to become self-supporting. Since 1992, Unrwa says it has distributed more than 570,000 loans, totalling $615m.

What is Unrwa's political and security role?

Unrwa says it is governed by the UNGA humanitarian principles under Resolutions 46/182 and 58/11, which emphasise humanity, impartiality, neutrality and independence. The agency’s remit is to assist Palestinian refugees through aid and support, and it has no designated political or security role.

Unrwa is also not responsible for the administration, security or application of law in the camps where it operates. These responsibilities fall to the sovereign authority within the camps or outside them.

The agency works closely with the United Nations High Commissioner for Refugees (UNHCR), set up in 1951 to support refugees in Europe after World War II but now has a global remit - excluding areas covered by Unrwa.

How is Unrwa funded?

Unrwa reported that in 2023, UN member states and the European Union accounted for pledges of “close to 92.6 percent of financial contributions”, totalling $ 1.46bn.

In addition, funding from the UN budget and UN agencies amounted to $50.8m. Partnerships with businesses and foundations accounted for another $56.8m.

The top Unrwa donor in 2022, the most recent date for individual donations, was the US, with $343.9m. It was followed by Germany ($202.1m), the EU bloc ($114.2m), Sweden ($61m), Norway ($34m), Japan ($30.2m), France ($29m) and Saudi Arabia ($27m). The UK contributed $21.2m, India provided $5m, Russia $2m and China $1m. Indonesia and Malaysia each gave $200,000.

What does Israel think about Unrwa?

Israel had limited involvement with Unrwa before the Arab-Israeli war of 1967. However, since that conflict, Israel has occupied the West Bank and Gaza. The war left 300,000 people homeless, including 120,000 Palestinian refugees.

As the occupying power, Israel was nominally responsible for their welfare but ceded this responsibility to Unrwa, which built 10 camps.

Over time, many Israelis, particularly on the right, have challenged the agency's neutrality. Aside from providing support to millions of Palestinians who want the right to return to their former homes, most Unrwa staff members are Palestinian.

For many years, accusations against Unrwa focused on mismanagement of funds, the content of educational materials deemed antisemitic by critics or simply its slowness in adapting to regional changes.

In the past decade, criticism has increasingly focused on the alleged involvement of some Unrwa employees with Hamas. The group, which led the 7 October attacks, has controlled the territory since 2007. Aside from military activities, it is also responsible for civilian infrastructure and is the de facto governing authority in the enclave.

In 2018, Israeli Prime Minister Benjamin Netanyahu said: "Unrwa is an organisation that perpetuates the Palestinian refugee problem." And in 2021, Gilad Erdan, Israel's ambassador to the US and UN, said: "We believe that this UN agency for so-called refugees should not exist in its current format."

How has Unrwa been affected by Israel's war on Gaza?

Unrwa services have been severely disrupted or ceased since the events of 7 October and Israel's war on Gaza, which has left more than 38,000 Palestinians dead and thousands more missing. According to the UN, 85 percent of the population, around 1.9 million people, have been displaced multiple times.

The agency reported in its most recent update that 2.1 million people in Gaza are food insecure and that it needs $680.5m to meet their dietary needs. Only 10 of its 26 healthcare centres are now operational, caring for an estimated 16,800 patients.

At least 188 Unrwa installations - including shelters, schools and medical facilities - have been hit by Israeli forces, resulting in the deaths of 539 internally displaced people seeking refuge.

UN property is protected under international law and cannot be targeted for attack.

In April, Middle East Eye reported that Israel had struck 352 deconfliction sites registered by Unrwa for humanitarian aid.

Unrwa reported that 197 of its workers had been killed by Israeli forces as of 7 July.

Why did Unrwa lose funding earlier this year?

In late January 2024, Israel accused 12 Unrwa workers of involvement in the 7 October attacks, alleging they had distributed ammunition and aided in civilian kidnappings.

Lazzarini said the Israeli authorities had informed the agency about the alleged involvement. "To protect the agency's ability to deliver humanitarian assistance, I have taken the decision to immediately terminate the contracts of these staff members and launch an investigation in order to establish the truth without delay."

Unrwa terminated the contracts of 10 staff members (two were confirmed dead).

Israeli Foreign Minister Israel Katz called for Lazzarini’s resignation, stating: "Unrwa employees participated in the massacre of October 7. Lazzarini should draw conclusions and resign. Supporters of terrorism are not welcome here."

Prime Minister Netanyahu told a UN delegation visiting Israel: "It is time for the international community and the UN itself to understand that Unrwa's mission must be terminated. It seeks to preserve the issue of Palestinian refugees. We must replace Unrwa with other UN agencies and other aid agencies if we want to solve the Gaza problem as we plan to do."

Following these allegations, several countries, including the US, suspended funding. The EU bloc did the same, leading to a significant cut in Unrwa’s funding.

Has Unrwa had funds cut before?

Yes, Unrwa's financing has often been precarious.

For several decades, governments in Washington have questioned how US money has been used.

In 2004, Congress asked the Government Accountability Office to investigate whether militants had accessed money intended for humanitarian reasons. The report highlighted constraints in Gaza and the West Bank, including limited data access and threats to staff.

Perhaps most seriously, in 2018, former US President Donald Trump ordered the Department of State to halt all contributions to Unrwa due not only to the "budget gap itself and failure to mobilise adequate and appropriate burden sharing" but also because it is "simply unsustainable and has been in crisis mode for many years".

The statement read: "The United States will no longer commit further funding to this irredeemably flawed operation."

The move created a severe shortfall in funding, which other donors had to fill. Even then, the agency was sometimes unable to pay staff.

In April 2021, less than four months after taking office, the Biden administration resumed aid, providing $235m in support for the Palestinians - with $150m designated specifically for Unrwa.

What was the UN's response?

On 5 February, the UN commissioned former French foreign minister Catherine Colonna to review the allegations and Unrwa's operations.

The inquiry, published on 24 April, found no evidence of wrongdoing by Unrwa staff, noting that Israel had neither responded to requests for names and information nor "informed Unrwa of any concrete concerns relating to Unrwa staff since 2011".

Colonna acknowledged Israel's criticism of the review: "We know the Israeli government has publicly strong views on Unrwa. The vast majority of the international community doesn’t share these views." 

The report noted that Unrwa's neutrality was occasionally questioned, particularly regarding teaching materials described as antisemitic.

Unrwa welcomed the report and said it was “fully committed to implementing these recommendations”.

Has funding been resumed to Unrwa?

Most countries have now resumed funding for Unrwa, including Germany, Japan, France, Switzerland, Netherlands, Italy, Austria, Finland, Iceland, Romania, New Zealand and Estonia. Others - such as the EU, Australia, Canada, and Sweden - restored funding before the report's release.

"The best available current advice from agencies and Australian government lawyers is that Unrwa is not a terrorist organisation," said Penny Wong, Australia's foreign minister, on 15 March.

On Friday, David Lammy, the new British foreign secretary following Labour's victory in this month's elections, announced that the UK government would resume funding for Unrwa to provide aid to Gaza.

Lammy told parliament the UK would release £21m ($27m) to support Unrwa's work in Gaza and ensure the delivery of essential services in the region.

He said: "Humanitarian aid is a moral necessity in the face of such a catastrophe, and it is aid agencies who ensure UK support reaches civilians on the ground. Unrwa is absolutely central to these efforts. No other agency can get aid into Gaza at the scale needed."

Regarding allegations of Unrwa staff involvement in the October 7 attacks, Lammy said: "We are reassured that after Catherine Colonna’s independent review, Unrwa is ensuring they meet the highest standards of neutrality and strengthening its procedures, including on vetting."

Lammy made this announcement after his visit to Israel and the West Bank, where he met with Prime Minister Netanyahu in Jerusalem and Palestinian Authority Prime Minister Mohammad Mustafa in Ramallah.

Why has the US not resumed funding to Unrwa?

The US is the only major donor that has yet to restore its funding for the agency, and no changes are expected until at least next year.

On 23 March, Congress passed four bills banning payments to Unrwa until March 2025. However, it allocated $95bn in aid to Ukraine, Israel and Taiwan. The move was welcomed by the Israeli government.

Leading Democrat Bernie Sanders said he had objected to the bill not only for supplying more military support to Israel but also for its impact on Unrwa. 

"While hundreds of thousands of Palestinian children face starvation in Gaza, this bill actually prohibits funding to Unrwa, the key United Nations aid agency delivering life-saving humanitarian support. This will only intensify the already horrific situation in Gaza," he said in a statement.

Efforts have been made to overturn the decision.

Congresswoman Rashida Tlaib introduced a resolution in May to recognise the Nakba, calling for Congress to "reinstate support for the United Nations Relief and Works Agency (Unrwa), which provides life-saving humanitarian assistance to Palestinians."

What has been Israel's response? 

Israel's relationship with Unrwa has gone from bad to worse since the war began.

Just before the release of the Colonna report, Israel's foreign ministry spokesperson, Oren Marmorstein, said: “The problem with Unrwa-Gaza is not a problem of a few bad apples. It is a poisoned and rotten tree whose roots are Hamas."

Israeli forces have attacked staff in the occupied West Bank, medical shipments have been delayed and Unrwa has closed its office in the Sheikh Jarrah neighbourhood of East Jerusalem due to repeated attacks and protests by settlers and far-right groups.

In late May, the Israeli parliament passed a bill to designate Unrwa as a "terrorist organisation," which would halt its operations in Israel, strip it of immunity, and criminalise its work and staff.

The move was condemned by Qatar, Saudi Arabia and Doctors Without Borders (MSF).

MSF's secretary-general, Christopher Lockyear, called the move "an outrageous attack on humanitarian assistance and an act of collective punishment against the Palestinian people".

Meanwhile, Josep Borrell, the EU foreign policy chief, said: "We reject any attempts to label Unrwa as a 'terrorist organisation'. How can a United Nations agency be considered a terrorist organisation?"

What is the future of Unrwa?

On 30 June 2023, Unrwa's mandate was extended for another three years, following the release of its strategic plan for 2023 to 2028.

However, one year later, Gaza and Unrwa have faced severe devastation: homes and businesses have been reduced to rubble, infrastructure has been wrecked and tens of thousands have been killed in the Israeli war.

The agency is grappling with immense challenges, including the loss of many staff members, the destruction of its facilities and escalating pressure from critics seeking to shut it down.

There is also the prospect of Donald Trump's return to the White House, which could usher in isolationist foreign policies that might further cut the agency's funding or threaten its existence.

The UN is acutely aware of these challenges. 

At the pledging conference in July, UN Secretary-General Antonio Guterres told delegates: "Palestinians in Gaza keep being forced to move like human pinballs across a landscape of destruction and death."

He detailed the persistent attacks and harassment faced by Unrwa staff, who nonetheless remain committed to their work, stating: "The work of Unrwa is one of the greatest factors providing hope and stability across a troubled region."

"Let me be clear: there is no alternative to Unrwa."