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Home News Middle East Trump's Gaza Plan

UNRWA faces shutdown as plan emerges to transfer responsibilities to Board of Peace

UNRWA's acting chief is advancing a plan to gradually dismantle the agency amid a massive budget deficit and an Israeli ban on its operations, diplomatic sources told Israel Hayom. The PLO and Hamas fear losing a key political asset, with Palestinian officials vowing to fight the move at the UN.

by  Danny Zaken
Published on  11-01-2026 19:34
Last modified: 11-01-2026 19:34
UN secretary-general, UNRWA nominated for Nobel Prize

IDF Soldiers at UNRWA Headquarters in Gaza (Archive), Photo: Reuters

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Arab and Western diplomatic sources tell Israel Hayom that a plan to gradually shut down the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and transfer its responsibilities and operations to the Board of Peace is expected to be presented soon, following talks between the two bodies.

UNRWA, established in 1949 and operational since 1950, is the UN agency dedicated specifically to Palestinian refugees. Its mandate has effectively preserved Palestinian refugee status across generations, even though most of those registered as refugees have long since settled and established themselves in other countries or in territories administered by the Palestinian Authority.

In recent years, Israel has passed two laws and additional legislation targeting UNRWA, banning its operations in Israel and prohibiting contact between the agency and Israeli government bodies. Most of its assets in Israel have been seized, while a sharp decline in contributions from Western and Arab countries has further undermined its ability to operate.

According to the sources who spoke to Israel Hayom, the plan is being spearheaded by UNRWA's acting commissioner-general, Christian Saunders. It calls for the agency's responsibilities to be transferred gradually to other bodies, including the Palestinian Authority in the West Bank and the Board of Peace in the Gaza Strip.

Saunders presented the proposal at a meeting of UNRWA's Advisory Commission, citing the agency's severe financial difficulties and arguing that a substantial portion of its operations could be transferred to those bodies.

UNRWA headquarters in Rafah. Photo: Getty Images

A deficit of up to $100 million

UNRWA's deficit for this year is estimated at $70 million to $100 million, equivalent to roughly one-tenth of its annual operating budget.

Initial steps toward implementing the plan have already been approved, but the proposal has triggered fierce opposition from the Palestinian leadership, which fears losing one of its principal political tools in its struggle against Israel: the institutional framework that preserves Palestinian refugee status.

The Executive Committee of the Palestine Liberation Organization (PLO) recently convened in Ramallah, inviting representatives of the UNRWA Employees Union to attend. The committee decided that the PLO and Palestinian Authority would work to thwart the plan.

Palestinian officials argued that any decision to dissolve UNRWA would require approval from the UN General Assembly. They also criticized Saunders, accusing him of acting out of political motives.

UNRWA headquarters in East Jerusalem. AP

International opposition to the plan

At a meeting of the agency's international advisory body held several days ago in Amman, Jordan, representatives of several Western countries, including Switzerland and Ireland, also opposed the proposal. Egypt joined the opposition, while other Gulf states did not. The Irish representative announced that he would seek alternative sources of funding for UNRWA in an effort to prevent its closure and halt the initial measures, which include dismissing thousands of Palestinian employees.

Israel Hayom has learned that talks between UNRWA and the Board of Peace have laid the groundwork for mechanisms to transfer the agency's responsibilities and operations in two main areas: education and health care. The Board of Peace has been preparing to assume responsibilities in these fields for more than a year as part of US President Donald Trump's plan for the reconstruction of Gaza. The plan is awaiting its next phase, which is supposed to begin after Hamas is disarmed. The Palestinian terrorist organization, however, is unwilling to surrender its weapons at this stage.

Israel has accused dozens of UNRWA employees of participating in the October 7, 2023, massacre and has presented evidence to support its allegations. The UN initially rejected most of the allegations for an extended period but eventually acknowledged that evidence had been presented against 19 employees and dismissed nine of them.

ציוד צבאי שנמצא בתוך שקי אונר"א , דובר צה"ל
Military equipment found inside UNRWA bags | Photo: IDF Spokesperson's Unit

Israel has also presented evidence that Hamas used UNRWA facilities throughout the Gaza Strip to conceal weapons and shelter terrorists. Some of the hostages abducted during the October 7 attack were also held in such facilities. The diplomats now believe Hamas will also oppose transferring UNRWA's responsibilities in Gaza to the Board of Peace.

They expect the battle over the agency's future to shift to the United Nations, first to the Security Council and then to the General Assembly.

Tags: Board of PeaceUNRWA

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