The Trump administration is planning to end all U.S. funding for the of the U.N. agency providing aid to Palestinian refugees as part of its decision to change U.S. foreign aid spending with respect to the Israeli-Palestinian conflict, American media reported Friday.
The United States' annual contribution to the U.N. Relief and Works Agency for Palestine Refugees in the Near East amounts to $350 million, comprising over 25% of the agency's $1.2 billion annual budget, making the U.S. its biggest donor.
In January, the Trump administration announced it would be withholding $65 million of a planned $125 million funding installment, saying any future donations would be contingent on comprehensive reforms in UNRWA.
The agency plunged into a financial crisis following the move, appealing to the international community for funds.
UNRWA Director Pierre Krähenbühl said last week that the agency has so far raised more than $238 million from other countries but is still facing a shortfall of more than $200 million.
According to Foreign Policy magazine, the looming decision to cut all aid to UNRWA was made at a meeting earlier this month between senior White House adviser Jared Kushner, President Donald Trump's son-in-law, and Secretary of State Mike Pompeo.
Since then, the administration has informed "key regional governments" of its plan, the report said, noting that Trump may officially announce the move in the U.N. General Assembly's annual session, set to begin on Sept. 18.
A State Department spokesperson declined to comment on the report, saying only that "U.S. policy regarding UNRWA has been under frequent evaluation and internal discussion."
According to The Washington Post, the move voices the administration's "disapproval of the way UNRWA spends the funds," and echoes the U.S.'s demand for the agency to revise the number of Palestinians recognized as refugees, to match reality.
UNRWA's data, which includes descendants of Palestinians displaced during the 1948 war for Israel's independence, pegs the number of Palestinian refugees in Jordan, Lebanon, Syria, the West Bank and Gaza Strip at 5.3 million, while U.S. data says that there are only about 20,000 Palestinian refugees worldwide.
Any change in UNRWA's definition of the Palestinian refugee status would effectively eliminate their claim to the "right of return" to land contested with Israel.
According to The Washington Post, the planned funding cuts, along with other policy shifts, such as Trump's recognition of Jerusalem as Israel's capital in December, are part of a major reshaping of Middle East policy.
'Trump administration plans to commit an immoral scandal'
However, many Middle East and security experts, including in Israel, have repeatedly warned against stifling UNRWA financially, saying it would aggravate an already disastrous humanitarian situation, especially in the Gaza Strip, and sharply increase violence and terrorism.
Dave Harden, a former U.S. Agency for International Development official, told Foreign Policy that the move would benefit hard-liners in the region, including Hamas, the terrorist group that controls Gaza.
"An immediate and capricious cut off of UNRWA funding risks collapsing the Palestinian Authority, empowering Hamas, and shifting the responsibility of health, education, and ultimately security services to the Israelis. The decision is dangerous, with unpredictable consequences," he said.
On Tuesday, U.S. Ambassador to the United Nations Nikki Haley challenged the world body's count of Palestinian refugees, saying it should be revised to reflect "an accurate account."
"First of all, you're looking at the fact that, yes, there's an endless number of refugees that continue to get assistance, but more importantly, the Palestinians continue to bash America. This is the government, not the Palestinian people – they [Palestinian officials] have their hand out wanting UNRWA money," Haley said in remarks at the Washington-based Foundation for Defense of Democracies.
She noted that the U.S.'s "concern is, the Palestinian Authority is not doing anything to fix the problems with Hamas in Gaza. They have to take responsibility for what is happening in Gaza, and until they take responsibility, and until the Arab community takes responsibility for what's happening in Gaza, we can't begin to try and fix this problem."
The administration also wants other countries in the region that claim to champion the Palestinian cause to increase their donations to UNRWA, she said.
"Where is Saudi Arabia? Where is the United Arab Emirates? Where is Kuwait? Do they not care enough about Palestinians to go and give money to make sure these kids are taken care of?"
As reports of the planned ending of UNRWA funding surfaced, the office of Palestinian Authority President Mahmoud Abbas issued a statement accusing the Trump administration of "stripping millions of Palestinians of their refugee status."
"After using humanitarian aid to blackmail and pressure the Palestinian leadership to submit to the empty plan known as the 'deal of the century,' the Trump administration plans to commit an immoral scandal against Palestinian refugees by giving itself the right to abolish [their] historical rights," Foreign Policy quoted Abbas spokesman Ahmad Shami as saying.
Abbas has refused to engage with Washington on the Israeli-Palestinian peace process since Trump's recognition of Jerusalem as the Israeli capital and the subsequent move of the U.S. Embassy there.
The Palestinian leader accused Trump of being "grossly biased" toward Israel, saying his decision proved that the U.S. cannot be trusted to act as an impartial mediator in the negotiations, which have been stalled since 2014.
