Diplomatic Sources Reveal Phased Plan to Dissolve UNRWA and Transfer Duties
Diplomatic sources indicate a phased plan to dissolve UNRWA and transfer its responsibilities to the Peace Council amid severe financial deficits and Israeli legislative bans.

Diplomatic sources report that a phased plan to dissolve UNRWA and transfer its responsibilities to the Peace Council is currently being advanced through ongoing discussions. UNRWA, established in the 1950s as the sole UN agency dedicated to Palestinian refugees, has faced mounting pressure following Israeli legislation that completely bans its operations within Israel and prohibits official contact with its personnel.
Financial Crisis and Leadership Initiative
The initiative is reportedly led by UNRWA Acting Commissioner-General Philippe Lazzarini, operating under the name Christian Saunders in diplomatic channels, driven by the agency's severe financial crisis. UNRWA is currently facing a deficit of $70 million to $100 million, amounting to roughly ten percent of its annual operating budget. The proposed transition involves gradually handing over agency tasks, particularly in education and health, to bodies such as the Palestinian Authority in the West Bank and the Peace Council in the Gaza Strip.
Palestinian and International Opposition
The plan has encountered fierce resistance from the Palestinian leadership, who fear losing a primary political tool regarding refugee status. The PLO Executive Committee convened in Ramallah to formulate opposition strategies, criticizing the leadership for advancing measures that require UN General Assembly approval. International reactions remain divided; while countries like Switzerland and Ireland, alongside Egypt, have expressed opposition and sought alternative funding, Gulf states have largely refrained from joining the blockade against the transition.
Security Concerns and Israeli Allegations
Israel has repeatedly accused UNRWA of deep infiltration by militant groups, presenting evidence that numerous employees participated in the October 7 massacre and that agency facilities were utilized to conceal weapons and hostages. While the UN previously dismissed many allegations, it ultimately dismissed several individuals following verified evidence. Diplomats assess that Hamas will similarly oppose transferring authorities in Gaza to the Peace Council, setting the stage for a broader diplomatic showdown at the UN Security Council and General Assembly.





