UNRWA at a CrossroadsCharting a Course to Meaningful Reform

Key Findings:

October 7 and the war in Gaza have cast a spotlight on UNRWA’s deep-seated and longstanding flaws. This policy report offers a comprehensive overview of the challenges and debates surrounding the United Nations Relief and Work Agency for Palestine Refugees (UNRWA), especially in light of the Gaza conflict and allegations of employee ties to Hamas.

Established in 1949, UNRWA has played a crucial role in delivering services—education, healthcare, social programs, and humanitarian aid—to 5.9 million Palestinian refugees in Gaza, the West Bank, East Jerusalem, Jordan, Syria, and Lebanon. It has effectively served as a quasi-governmental body for refugees, filling governance voids.

The agency lacks a clear mandate and governance structure, which leads to confusion over its responsibilities and accountability gaps. UNRWA’s operations are seen as politically influenced, particularly around the Palestinian right of return, complicating its neutral position. UNRWA has faced accusations of some employees being linked to Hamas, highlighting significant issues with neutrality and vetting processes.

The agency relies on voluntary donations, creating financial instability and limiting its capacity to plan long-term. Concerns over transparency also persist, particularly regarding the accuracy of its refugee registry and financial accountability.

The U.S. has historically been one of UNRWA’s largest donors. However, after the Trump administration cut funding in 2018, other countries filled the gap. The Biden administration reinstated funds without conditions, but recent controversies following October 7 have sparked renewed scrutiny of the agency, leading to a suspension of U.S. funding through 2025. This represents a key moment for potential U.S.-led reform.

The Colonna Report proposes 50 reforms centered on neutrality, oversight, and funding. The goal is to gradually shift UNRWA's responsibilities to a revitalized Palestinian Authority (RPA), coupled with a coordinated international effort for reform.

UNRWA is vital to humanitarian efforts in Gaza, providing food, healthcare, and shelter. However, its operations have been constrained by funding suspensions and Israel’s unwillingness to cooperate amid the ongoing conflict.

Some Israeli and U.S. officials advocate for dismantling UNRWA, beginning with Gaza. They argue that it is politically biased and unfit for its role, while Palestinians view dismantling it as an attack on their right of return.

Various U.N. bodies like the World Food Program (WFP) and WHO, or international NGOs, could temporarily take over specific services like food aid, healthcare, and education. This depends on the post-war governance model in Gaza and how power is shared among Israel, Hamas, and the Palestinian Authority.

Outside Gaza, resistance from Arab countries and the refugee population makes transitioning services to host countries difficult. The operational complexity, political sensitivities, and need for significant coordination make dismantling a complicated, long-term process.

Despite its flaws, there is no clear substitute for UNRWA’s wide-ranging services. Reform options include improving managerial and operational systems or addressing political issues, like updating eligibility criteria and enforcing accountability. Gaza’s uncertain governance post-war makes any change risky, as no viable alternative to UNRWA currently exists. The Palestinian Authority, lacking legitimacy, may not be able to assume responsibility, while Israel’s focus on security complicates humanitarian work.

Policy Recommendations

Short-Term: Restore U.S. funding to UNRWA, contingent on robust reform efforts. This includes better vetting, transparency, and security at UNRWA facilities. Additionally, the U.S. should support other humanitarian agencies and foster Israel-NGO partnerships.

Medium-Term: Establish a Gulf-led task force to reform education in Palestinian territories, focusing on promoting peace and improving teaching standards.

Long-Term: Gradually transition UNRWA services to a revitalized Palestinian Authority (RPA) and to host countries like Jordan and Lebanon, starting with non-contentious areas like healthcare.