Renewed US assistance won’t end UNRWA’s financial troubles

A Palestinian boy receives food supplies from a UNRWA warehouse in Rafah in the southern Gaza Strip. (File/AFP)
Short Url
Updated 06 June 2021
Follow

Renewed US assistance won’t end UNRWA’s financial troubles

  • Spokesman says pandemic has hit both the aid agency and the Palestinians it serves badly
  • COVID-19 pandemic has been hindering UNRWA’s ability to service the population in Gaza, Syria and Lebanon

AMMAN: The UN relief agency for Palestinian refugees, UNRWA, has hailed the US administration’s resumption of aid as politically significant but said its longstanding financial crisis will continue during 2021, should no more donations come.
US President Joe Biden’s administration has announced the resumption of assistance to Palestinians, including to UNRWA, signaling a U-turn from the policies of President Donald Trump, who cut off assistance to the agency in 2018.
The State Department said it would provide a total of $235 million in assistance to projects in the West Bank and Gaza and to UNRWA, which provides aid and other vital services, including education and critical health care services to 5.7 million Palestinian refugees in the occupied territories, Gaza Strip, Jordan, Syria and Lebanon.
As detailed by US Secretary of State Antony Blinken in April, $150 million will be go to UNRWA, $75 million to economic and development assistance and $10 million to peace-building programs.
UNRWA Spokesperson Sami Mshasha has said that the US’s renewed assistance to UNRWA is extremely important but the money pledged is still below Washington’s regular donation to the relief agency.
“Despite the announcement of the Biden administration that they will resume the support to the agency, till the end of 2017 the US was our largest donor with a donation of $260 million, which represented at that time one fourth of our budget. This year they have announced that they will only be giving us $150 million to our regular services and regular budget, as well as our emergency operations,” Mshasha said in an interview with Arab News.
Mshasha explained that UNRWA has entered 2021 with a budget deficit exceeding $200 million, part of which was a carry-over of liabilities the agency had failed to pay in 2020. “As we speak, we are looking at a budget deficit exceeding $150 million and this is a serious one with (the agency’s) budget of 1.2 billion that covers our regular operations and emergency operations.
“The American resumption of aid is extremely important politically as well as financially and it will prompt other donors either to resume the levels of funding that (UNRWA) enjoyed from them in years before or to step up and increase their funding.”
The spokesperson said that some of UNRWA’s cash crisis has deepened with its longtime donors either cutting off or reducing their donations as a result of the COVID-19 crisis and its accompanying economic hardships. “So the additional money from the US is basically balanced out by the fact that two other major donors have indicated that they will not be able to meet their annual obligations as in past years even though their contributions remain important for us.”
Mshasha also said that Washington has announced additional assistance to UNRWA following the recent conflict in Gaza to help an early recovery and meet the needs of the coastal enclave’s population. “(It is) not clear how much but it will be an additional money.”
“All in all, the financial situation of the agency is very dire,” he said, explaining that UNRWA is still applying strict austerity measures on its 28,000 staff members to address the budget deficit, continue delivering its health, education, relief and social services to Palestinian refugees and meet its obligations to external services providers.
The spokesperson explained that UNRWA has launched an emergency appeal of $232 million to finance its operations in the occupied Palestinian territory (oPt) in 2020 and another appeal of $380 million for 2021. “In both these emergency portals, we (are) also envisioning a budget deficit – a huge one in that.”
COVID-19
Mshasha explained that the COVID-19 pandemic has been hindering UNRWA’s ability to service the population in Gaza, Syria and Lebanon and meet their increasing health and economic needs.  
In addition to health services and vaccination, he explained that the relief agency is struggling to repair the “economic devastation” of the population – most of them are daily-paid workers who ended up unemployed as a result of the pandemic. “Those people are to be added to the number of people who are under the poverty line and thus qualify for our food and in-kind assistance in Gaza, Syria and elsewhere.”
He also said that UNRWA is working with health agencies to vaccinate as many people as possible “but the inoculation rate is still very low” in besieged Gaza, war-hit Syria and crisis-hit Lebanon. “We are now concerned about a third wave (of COVID-19) after the recent conflict in Gaza and this is now on the top of all worries and challenges gripping the Strip.”
UNRWA has launched a $ 94.6 million COVID-19 appeal to mitigate the impact of the pandemic on Palestine refugees in the Middle East, with a special focus on health, cash assistance and education.
Mshasha explained that the agency is working with its strategic dialogue partners Sweden and Jordan which, he said, have been leading the efforts to solve UNRWA’s financial problems. They plan to organize an international conference to bring together the agency’s donors and supporters to discuss their long-term arrangements for UNRWA. The spokesperson expected to the international conference to take place in October.
“We need a predictable framework for our financial situation, one we can build on and plan upon and one that is multiyear.”


Gaza ceasefire enters phase two despite unresolved issues

Updated 16 January 2026
Follow

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.