US Urges Donors to Reconsider Funding UNRWA, Advocates for New Framework

At the United Nations on July 1, Ambassador Jeff Bartos suggested donors face a choice. They can continue supporting the United Nations Relief and Works Agency for Palestine Refugee (UNRWA) or move towards a system offering peace and prosperity for Gazans.

Recent developments have added pressure on the international community. Finland has joined the ranks of nations like the U.S. and Sweden that have ceased to fund the agency linked to terrorist groups. UNRWA faces investigations connecting it to Hamas, with accusations of involvement in the October 7, 2023 attacks in Israel.

The Finnish Ministry for Foreign Affairs confirmed that its support for UNRWA would end in 2026. While the decision was made, they have not identified future partners to address the region’s needs. President Trump’s administration had already cut funding in February 2025, redirecting aid through different U.N. channels.

The Board of Peace advocates for a new approach, focusing on a demilitarized and deradicalized New Gaza. They aim to collaborate with trusted partners, sidelining UNRWA.

Investigations by the USAID Office of Inspector General (OIG) indicate potential terrorist affiliations among UNRWA’s staff. The findings led to suggestions of dismissing 108 individuals linked to U.S.-funded operations. A senior U.S. official highlighted that these findings challenge the notion of UNRWA as Gaza’s only aid conduit.

UN Watch alleged that 12% of UNRWA staff in Gaza are part of terrorist entities. Hillel Neuer, executive director of UN Watch, argued that withdrawing funds is a move towards deradicalization. He stressed that aid can still reach Palestinians through organizations like the World Food Programme.

Stéphane Dujarric from U.N. Secretary-General António Guterres’ office acknowledged Finland’s past contributions and looked forward to continued dialogue. Despite the cessation of Finnish funding, the call for supporting UNRWA’s work remains.

Finland’s funding, approximately $23.23 million over four years, will conclude after 2026. Neuer emphasized that defunding could be essential for peace, criticizing UNRWA for perpetuating conflict through the promise of a ‘right of return’ for Palestinians.

Ultimately, UNRWA’s perceived inability to reform, as exposed by USAID OIG and UN Watch, prompts a global rethink on funding and strategy. The goal is to reallocate resources towards genuine humanitarian aid and the empowerment of Palestinian society.