U.N. Secretary‑General Antonio Guterres urged countries and member states to cover a $100 million funding gap for UNRWA. He expressed fear for millions of Palestinians because of the shortfall. UNRWA serves approximately 2.6 million Palestinians and operates in Gaza, the West Bank, Lebanon, Jordan and Syria.

The agency’s situation has become increasingly precarious due to sweeping restrictions throughout occupied Palestinian territory and a large cash shortfall. UNRWA staff were accused of taking part in the October 2023 Hamas attack. UNRWA provides aid, schooling, healthcare, social services and shelter to the same 2.6 million Palestinians.

According to Bluesky, UNRWA is nearing a breaking point because of deep cost‑cutting, austerity measures and the $100 million funding shortfall, and the agency has cut services by 20%. Gdelt reported that the United States, UNRWA’s biggest donor, cut funding in January 2024 after Israel accused UNRWA staff of involvement in the October 2023 Hamas attack, and that Sweden cut its 2025 funding to the agency. Gdelt also noted that other major donors paused funding while Hamas‑related charges were investigated, but most have resumed contributions. Econotimes.com said UNRWA’s worsening liquidity crisis threatens its ability to continue delivering essential humanitarian services to millions of Palestinian refugees.