The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA): Overview and U.S. Funding Prohibition

The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA): Overview and U.S. Funding Prohibition

INSIGHTi

The United Nations Relief and Works Agency
for Palestine Refugees in the Near East
(UNRWA): Overview and U.S. Funding
Prohibition
Updated June 14, 2024
On January 26, 2024, the Biden Administration temporarily “paused” all U.S. funding to the United
Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), citing allegations
that 12 UNRWA employees were involved in the October 7, 2023, attacks led by Hamas (a U.S.-
designated foreign terrorist organization) against Israel. According to the State Department, the pause
prevented approximately $300,000 in unobligated FY2024 funds and just over $2.5 million in obligated
but unpaid balances for FY2023 from being disbursed to UNRWA. In March 2024 (in Division G, Section
301 of the Further Consolidated Appropriations Act, 2024, P.L. 118-47), Congress prohibited U.S.
funding to UNRWA from (1) any amounts provided in prior fiscal years or in FY2024, or (2) for amounts
provided in FY2025, until March 25, 2025.
Some other major UNRWA donors also paused their funding in January, though many—including the
European Union and Germany—have since resumed contributions, based partly on the urgent
humanitarian crisis in Gaza, and partly on UNRWA’s reported assurances that it would take additional
measures to mitigate future risks of possible involvement of its staff and assets in terrorist activities. Arab
states criticized the January suspension of funding to UNRWA, and Israel has lamented some countries’
resumption of contributions.
In response to the allegations about UNRWA staff, UNRWA issued a public statement, saying that it
would “immediately terminate the contracts of these staff members and launch an investigation.” U.N.
Secretary-General António Guterres also activated an immediate U.N. Office of Internal Oversight
Services (OIOS) investigation. On April 26, 2024, the Secretary-General’s spokesperson provided an
update on the OIOS investigation, stating that OIOS expanded it from 12 to 19 persons, based on
information received since January. OIOS has subsequently suspended efforts in four cases for
insufficient evidence, and closed one case because it said Israel had not provided any supporting
evidence. Fourteen staff members remain under OIOS investigation.
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A separate review took place in parallel with the OIOS inquiry during early 2024. In mid-January,
UNRWA announced a “full, independent review of the organization.” Following the Israeli allegations,
the independent review was elevated and subsumed under the auspices of the Office of the U.N.
Secretary-General. The Secretary-General appointed an independent group—headed by former French
Foreign Minister Catherine Colonna—to assess UNRWA’s neutrality and response mechanisms, which
publicly released its final report on April 20, 2024. The findings acknowledge that UNRWA has many
mechanisms in place to ensure compliance with humanitarian principles, including that of neutrality. The
group also identifies some gaps, and offers recommendations.
Israeli Prime Minister Benjamin Netanyahu has called for UNRWA’s mission to end, and the Israel
Defense Forces (IDF) has reportedly decided to work to weaken UNRWA and attempt to have other
organizations replace its humanitarian assistance functions. While Israel has accused UNRWA of
employing hundreds of staff in Gaza linked to militant groups, and alleged that Hamas has accessed
electricity from UNRWA facilities, UNRWA has stated that it consistently shares information with Israel
and takes other actions to prevent developments that could compromise UNRWA’s neutrality. UNRWA
also has said that some employees have reported being “pressured by Israeli authorities” into false
statements about the alleged actions and organizational links of UNRWA staff.
UNRWA: An Overview
The U.N. General Assembly established UNRWA in 1949 with a temporary mandate to provide
humanitarian assistance and protection to registered Palestinian refugees (5.9 million as of 2023) living in
the West Bank, Gaza Strip, Jordan, Lebanon, and Syria. (UNRWA is distinct from the U.N. High
Commissioner for Refugees [UNHCR], with each operating under separate organizational mandates.)
UNRWA provides food and other essential supplies, health care, education, and other assistance directly
to its beneficiaries, in coordination with public services provided by the host authorities. Some 1.4 to 1.7
million of Gaza’s roughly 2.1 million residents are registered Palestinian refugees, and many have relied
on humanitarian assistance for decades. With no political resolution on the refugees’ status, the General
Assembly has regularly extended UNRWA’s mandate; it expires on June 20, 2026. UNRWA is funded
primarily through voluntary contributions from governments and also through the U.N. regular budget.
For 2023, UNRWA’s funding totaled $1.47 billion.
Conditions in Gaza were already dire before the Hamas-led attacks against Israel. The current conflict has
exacerbated the humanitarian situation and resulted in massive population displacement and infrastructure
damage, tens of thousands of Palestinian casualties, and famine-like conditions in some areas. UNRWA is
the largest humanitarian organization in Gaza and the primary provider of direct services and assistance to
Palestinian refugees, including operating temporary shelters for those displaced, running mobile health
teams, and distributing food, water, and other necessities. The intensity of the ongoing hostilities and
situation on the ground greatly constrain the ability of UNRWA and other humanitarian organizations to
access areas in Gaza, assess conditions, and deliver life-saving assistance and supplies. As of June 9,
2024, at least 193 UNRWA staff had been killed in the hostilities since October 7.
U.N. officials have emphasized the importance of land routes to deliver large volumes of humanitarian
assistance, but delays and other obstacles to transporting assistance through crossings and Israeli
checkpoints and safely delivering it have hampered progress. In March, the United States and other
countries began providing additional humanitarian assistance to Gaza via airdrops; on May 17, a
temporary U.S.-built pier off Gaza opened, enabling humanitarian assistance to enter the Strip via a sea
corridor from Cyprus, although it has since faced a number of operational and security challenges.
The Secretary-General has appealed to governments to guarantee the continuity of UNRWA’s operations,
an appeal supported by international humanitarian agencies and nongovernmental organizations. In
addition to the flow of assistance and funding, the International Committee of the Red Cross and other

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organizations have emphasized the need for a ceasefire, for the parties to adhere to international
humanitarian law in the conduct of hostilities, and for humanitarian access to be granted to the Israeli
hostages and Palestinian detainees.
U.S. Funding, Oversight, and Policy Options
The United States has historically been the largest financial contributor to UNRWA, with U.S. funding
totaling more than $7.3 billion since 1950 (Table 1). According to UNRWA, in 2023, U.S. contributions
accounted for nearly 30% of its donor contributions. U.S. contributions have been provided primarily
through the Migration and Refugee Assistance (MRA) account in annual Department of State, Foreign
Operations, and Related Programs (SFOPS) appropriations acts.

U.S. contributions to UNRWA are subject to various legislative conditions and oversight measures.
Section 301(c) of the 1961 Foreign Assistance Act (P.L. 87-195), as amended, states that the United States
shall provide contributions only if UNRWA takes “all possible measures” to ensure that no contribution
shall assist any refugee “who has engaged in any act of terrorism.” Some Members of Congress have
regularly raised concerns as part of the legislative process about UNRWA’s effectiveness and neutrality,
and have supported legislation to increase oversight of UNRWA, limit U.S. funding and strengthen
vetting procedures to prevent any diversion to terrorists, screen any educational materials for UNRWA-
administered schools and summer camps that might generate anti-Semitic or other incitement, and
examine the definition of Palestinian refugees and their “right of return.” Other Members, including some
who have voiced concerns about some aspects of UNRWA, have argued that the organization’s activities
are critical and advocated for continued or greater financial support. These debates have intensified since
the January allegations surfaced.

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When deliberating on U.S. policy response to the situation in Gaza, Congress and the Administration may
consider the following selected issues:
• U.S. funding. Whether to continue, lift, or alter the current prohibition on UNRWA
funding through March 2025.
• UNRWA investigations. How, if at all, the United States will support and/or monitor the
OIOS investigation and Colonna group review, as well as the implementation of any
recommendations, and to what extent, if at all, it will conduct its own investigation.
• Possible UNRWA reforms or alternatives. Whether and how to pursue reforms by
UNRWA and/or explore if other humanitarian organizations have the capacity or are
willing to be the primary provider of humanitarian assistance and protection to
Palestinian refugees in Gaza. In April, a State Department official said that U.S.
assistance could flow through other organizations, while also asserting that UNRWA
carries out functions that other entities cannot readily replace.

Author Information

Rhoda Margesson
Jim Zanotti
Specialist in International Humanitarian Policy
Specialist in Middle Eastern Affairs

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