WASHINGTON: The United States will give a UN agency $60 million in aid for Palestinians but withhold a further $65 million for now, a US official said on Tuesday as the Trump administration appeared to carry out a threat it made two weeks ago to cut funding.
While saying the decision would sustain schools and health services, the US official echoed US President Donald Trump in calling on other nations to provide more funds because he believes the United States pays more than its share.
The decision to keep back some money is likely to compound the difficulty of reviving Israeli-Palestinian peace talks and to further undermine Arabs’ faith that the United States can act as an impartial arbitrator, particularly following Trump’s Dec. 6 announcement reversing decades of US policy and recognize Jerusalem as Israel’s capital.
A Palestinian official quickly criticized Washington’s decision to keep back some of the money and United Nations Secretary-General Antonio Guterres said he was unaware of any change on aid but he was “very concerned” about the possibility of a cut in funding.
The US official, who spoke on condition of anonymity, said the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA) that will receive the money needed to be fundamentally reevaluated “in the way it operates and the way it is funded.”
“Without the funds we are providing today, UNRWA operations were at risk of running out of funds and closing down. The funds provided by the United States will prevent that from happening for the immediate future,” the official said, saying the additional “$65 million will be held for future consideration.”
In a Twitter post on Jan. 2, Trump said that Washington gives the Palestinians “HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect.
“They don’t even want to negotiate a long overdue peace treaty with Israel ... with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?” Trump added in his tweet.
While the US official did not link the US decision to Trump’s tweet, he made a point often advanced by the president by saying the United States had been UNRWA’s single largest donor for decades and demanded other nations do more.
“It is time other countries, some of them quite wealthy, step in and do their part to advance regional security and stability,” the official said.
Trump’s aides initially debated whether to cut off all UNRWA aid after the tweet, a second US official said. But those opposed to the idea argued that it could further destabilize the region, the official said.
“This decision confirms the US administration is continuing in wiping out the rights of the Palestinian people,” Palestine Liberation Organization official Wasel Abu Youssef told Reuters.
“First was declaring Jerusalem as the capital of Israel and today the refugee issue,” he said.
Historically, US administrations had said the status of Jerusalem must be decided in Israeli-Palestinian peace talks. The city is holy to three major monotheistic faiths.
At the United Nations, Guterres told reporters that the services provided by UNRWA were “of extreme importance, not only for the wellbeing of these populations ... but also in my opinion and an opinion that is shared by most international observers, including some Israeli ones, it is an important factor of stability.”
“So if UNRWA will not be in a position to provide the vital services and the emergency forms of support that UNRWA has been providing this will create a very, very serious problem and we will do everything we can to avoid this situation,” he said.
US to provide $60m in Palestinian aid, withhold $65m
US to provide $60m in Palestinian aid, withhold $65m
Gaza ceasefire enters phase two despite unresolved issues
- Under the second phase, Gaza is to be administered by a 15-member Palestinian technocratic committee operating under the supervision of a so-called “Board of Peace,” to be chaired by Trump
JERUSALEM: A US-backed plan to end the war in Gaza has entered its second phase despite unresolved disputes between Israel and Hamas over alleged ceasefire violations and issues unaddressed in the first stage.
The most contentious questions remain Hamas’s refusal to publicly commit to full disarmament, a non-negotiable demand from Israel, and Israel’s lack of clarity over whether it will fully withdraw its forces from Gaza.
The creation of a Palestinian technocratic committee, announced on Wednesday, is intended to manage day-to-day governance in post-war Gaza, but it leaves unresolved broader political and security questions.
Below is a breakdown of developments from phase one to the newly launched second stage.
Gains and gaps in phase one
The first phase of the plan, part of a 20-point proposal unveiled by US President Donald Trump, began on October 10 and aimed primarily to stop the fighting in the Gaza Strip, allow in aid and secure the return of all remaining living and deceased hostages held by Hamas and allied Palestinian militant groups.
All hostages have since been returned, except for the remains of one Israeli, Ran Gvili.
Israel has accused Hamas of delaying the handover of Gvili’s body, while Hamas has said widespread destruction in Gaza made locating the remains difficult.
Gvili’s family had urged mediators to delay the transition to phase two.
“Moving on breaks my heart. Have we given up? Ran did not give up on anyone,” his sister, Shira Gvili, said after mediators announced the move.
Israeli Prime Minister Benjamin Netanyahu said efforts to recover Gvili’s remains would continue but has not publicly commented on the launch of phase two.
Hamas has accused Israel of repeated ceasefire violations, including air strikes, firing on civilians and advancing the so-called “Yellow Line,” an informal boundary separating areas under Israeli military control from those under Hamas authority.
Gaza’s Hamas-run health ministry said Israeli forces had killed 451 people since the ceasefire took effect.
Israel’s military said it had targeted suspected militants who crossed into restricted zones near the Yellow Line, adding that three Israeli soldiers were also killed by militants during the same period.
Aid agencies say Israel has not allowed the volume of humanitarian assistance envisaged under phase one, a claim Israel rejects.
Gaza, whose borders and access points remain under Israeli control, continues to face severe shortages of food, clean water, medicine and fuel.
Israel and the United Nations have repeatedly disputed figures on the number of aid trucks permitted to enter the Palestinian territory.
Disarmament, governance in phase two
Under the second phase, Gaza is to be administered by a 15-member Palestinian technocratic committee operating under the supervision of a so-called “Board of Peace,” to be chaired by Trump.
“The ball is now in the court of the mediators, the American guarantor and the international community to empower the committee,” Bassem Naim, a senior Hamas leader, said in a statement on Thursday.
Trump on Thursday announced the board of peace had been formed and its members would be announced “shortly.”
Mediators Egypt, Turkiye and Qatar said Ali Shaath, a former deputy minister in the Ramallah-based Palestinian Authority, had been appointed to lead the committee.
Later on Thursday, Egyptian state television reported that all members of the committee had “arrived in Egypt and begun their meetings in preparation for entering the territory.”
Al-Qahera News, which is close to Egypt’s state intelligence services, said the members’ arrival followed US Middle East envoy Steve Witkoff’s announcement on Wednesday “of the start of the second phase and what was agreed upon at the meeting of Palestinian factions in Cairo yesterday.”
Shaath, in a recent interview, said the committee would rely on “brains rather than weapons” and would not coordinate with armed groups.
On Wednesday, Witkoff said phase two aims for the “full demilitarization and reconstruction of Gaza,” including the disarmament of all unauthorized armed factions.
Witkoff said Washington expected Hamas to fulfil its remaining obligations, including the return of Gvili’s body, warning that failure to do so would bring “serious consequences.”
The plan also calls for the deployment of an International Stabilization Force to help secure Gaza and train vetted Palestinian police units.
For Palestinians, the central issue remains Israel’s full military withdrawal from Gaza — a step included in the framework but for which no detailed timetable has been announced.
With fundamental disagreements persisting over disarmament, withdrawal and governance, diplomats say the success of phase two will depend on sustained pressure from mediators and whether both sides are willing — or able — to move beyond long-standing red lines.
