UNRWA, facing possible closure, keeps low profile and prepares drastic cuts

UNRWA, the UN agency for Palestinian refugees, is preparing major cuts as it faces a severe cash shortage and political pressure from Israel and the United States. Its acting chief, Christian Saunders, has adopted a more restrained public tone, while the agency considers how to stay operational as support and prospects for a political resolution weaken.

UNRWA reported a $70 million cash-flow deficit and is considering laying off between 2,000 and 3,000 Palestinian staff, mainly in Gaza; a higher estimate of 3,000 to 4,000 was also discussed with donor representatives. Saunders has proposed reducing operations by 10% annually for five years across the agency’s five areas, after services and staff salaries were already cut by 20%. UNRWA serves about half of 6.5 million registered Palestinian refugees with education, health care and aid, and its mandate was renewed for three years in 2025.