United Nations Secretary-General Antonio Guterres has appealed to member states to urgently help plug a $100 million funding gap facing the UN agency for Palestinian refugees, warning it is close to "breaking point" after months of deep spending cuts.
Speaking at a UN General Assembly meeting on Tuesday (30 June), Guterres said the financial crisis threatened the future of the UN Relief and Works Agency for Palestine Refugees (UNRWA).
The agency provides education, healthcare, food aid and other essential services to around 2.6 million Palestinians in Gaza, the West Bank, Jordan, Lebanon and Syria.
"They cannot keep going like this without urgent backing and financial support from member states," Guterres said.
UNRWA's finances have been under severe pressure since the United States, previously its largest donor, suspended funding in January 2024 after Israel accused several agency employees of taking part in the Hamas-led attacks on 7 October 2023. Sweden also halted its 2025 funding.
While most countries that paused contributions have since resumed payments, Guterres said the agency still faces a major cash shortfall despite reforms introduced following the allegations.
He also criticised what he described as ongoing efforts to weaken the agency through "disinformation, smear campaigns, legislative actions, operational restrictions, diplomatic roadblocks and more."
To cope with the funding crisis, UNRWA has reduced service hours by 20%, cut salaries for local staff and left around 15% of international posts unfilled.
"Any further cuts could push conditions past the breaking point," Guterres warned.
UN spokesperson Stephane Dujarric said the agency was facing an "existential crisis", with the outcome of Tuesday's donor meeting expected to be announced on Wednesday.
According to UNRWA, it received around $829 million in contributions this year, well below its estimated funding requirement of $3.3 billion.
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