UNRWA's Viability in Question Amid Funding Crisis

Philippe Lazzarini, the outgoing head of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), has issued a stark warning regarding the agency's future. In a letter dated March 17, 2026, addressed to the President of the U.N. General Assembly, Lazzarini stated that UNRWA may soon become nonviable, which could lead to Israel assuming its humanitarian responsibilities in Gaza. This warning comes at a critical juncture for the agency, which has been grappling with significant funding shortfalls and operational challenges.

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UNRWA has been the primary international agency supporting millions of Palestinian refugees since its establishment following the 1948 Arab-Israeli War. However, the agency has faced increasing scrutiny and criticism, particularly from Israel, which accuses it of bias. In October 2024, the Israeli parliament enacted a law prohibiting UNRWA's operations within its borders and restricting contact with its officials. The agency's funding has also been severely impacted; the United States, historically its largest donor, froze its contributions in January 2024 after allegations surfaced that some UNRWA staff participated in a Hamas attack that precipitated the Gaza war in October 2023.

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Lazzarini highlighted the dire consequences of ongoing violence, noting that over 390 UNRWA employees have been killed during the two-year Gaza conflict. He expressed horror at the agency's situation, stating, "I must state my horror that a United Nations entity has allowed to be crushed as UNRWA has, in violation of international law, with its staff and Palestinian communities paying an unacceptable price." He emphasized that the potential collapse of UNRWA would have far-reaching implications for Palestinian refugees, particularly as the region faces escalating political and security challenges.

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In his letter, Lazzarini warned of the immense risks associated with further destabilization in the region and the potential harm to Palestinian rights. He underscored the urgent need for support to prevent a humanitarian crisis, stating, "The risks of fuelling further regional instability and harming Palestinian rights are immense." Following Lazzarini's departure on March 31, 2026, Christian Saunders, currently a U.N. Special Coordinator, will serve as the interim head of UNRWA.

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Critics of UNRWA argue that the agency's operations perpetuate the refugee status of Palestinians rather than facilitating their integration into host countries. Israeli officials have consistently called for the agency's dissolution, claiming it fosters dependency and is complicit in anti-Israel sentiments. The ongoing funding freeze from the U.S. has intensified these criticisms, with some viewing it as a necessary step to hold UNRWA accountable.

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While Lazzarini's warnings reflect a consensus on the agency's precarious situation, there are conflicting views regarding the extent of UNRWA's impact on regional stability. Some analysts argue that its services are essential for maintaining peace, while others contend that its existence exacerbates tensions. The lack of a clear resolution to these issues leaves significant gaps in understanding the future of humanitarian aid in Gaza.

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• “I must inform you that UNRWA may soon no longer be viable, with potentially far-reaching consequences for Palestine Refugees at a time when the region faces seismic political and security challenges,” — Philippe Lazzarini, Outgoing Head of UNRWA

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• “The risks of fuelling further regional instability and harming Palestinian rights are immense,” — Philippe Lazzarini, Outgoing Head of UNRWA

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