The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is considering a major restructuring that could see thousands of its employees laid off and some of its responsibilities transferred to other bodies, including US President Donald Trump’s Board of Peace, according to multiple media reports citing diplomatic sources.
The reported proposal is spearheaded by UNRWA’s acting commissioner-general, Christian Saunders, and comes as the agency faces a severe financial crisis.
Trump’s Board of Peace (BoP), established under the framework endorsed by the UN Security Council in November 2025, is tasked with overseeing Gaza’s transitional governance, reconstruction, economic recovery, and coordination of humanitarian assistance.
The BoP has been explicit in its opposition to the UN agency set up for Palestinian refugees only, making it clear in a July 1 statement that “UNRWA has no place in the new Gaza.”
“We are turning the page on the complex of perpetual aid dependency and conflict. The people of Gaza deserve better,” the BoP said in a social media post on September 25.
BoP: UNRWA 'fails' to 'contribute to a deradicalized Strip'
In the same post, the BoP said it would “only work with trusted partners who will deliver for the people of Gaza and contribute to a de-radicalized Strip. UNRWA fails on those litmus tests.”
However, the Associated Press reported, also on September 25, that BoP representatives have held several private meetings with UNRWA officials. A BoP official acknowledged that some of the agency’s programs and vetted employees could continue if they were effective and accountable, while maintaining that the UN body’s institutional role was ending.
UN Watch’s Hillel Neuer posted last week that there is a plan to unravel UNRWA, which has long faced criticism from Israel, the United States, and UN Watch over allegations of links between some of its employees and terrorist organizations such as Hamas and Palestinian Islamic Jihad (PIJ) – including participating in October 7 and holding hostages.
According to Israel Hayom, which cited Arab and Western diplomatic sources, discussions have taken place about transferring some of UNRWA’s responsibilities to the BoP and other bodies.
Some of the agency’s remit could reportedly also be transferred to the Palestinian Authority (PA) in the West Bank.
The reported proposal was presented by Saunders at a meeting of UNRWA’s Advisory Commission, with the agency’s financial difficulties cited as a central reason for the restructuring. Saunders told Anadolu Agency on October 20 that the agency’s deficit stood at approximately $70 million.
“If we don’t receive money in the very near future, I will have to take some regrettable actions in order to ensure that we’re able to finish the year and to pay our staff salaries,” Saunders warned.
The head of the Arab Staff Union in Gaza, Mustafa Al-Ghoul, told the Mondoweiss anti-Zionist news site last week that UNRWA had dismissed around 1,000 staff in Gaza and let 2,000 retire without replacing them, leaving roughly 10,500.
Saunders gave the same figures in the Anadolu Agency interview, saying “We have 10,500 personnel on the ground [in the Gaza Strip].”
He also expressed support for the broader international framework for Gaza, saying: “US President Trump’s 20-point plan, UN Security Council Resolution 2803, the Board of Peace, and the National Committee for the Administration of Gaza – we are completely behind these efforts.”
Separately, Swiss French-language daily newspaper Le Temps published an investigation last week saying that Saunders plans for UNRWA to close its doors “within four or five years.” This has not yet been independently verified.
BoP to exercise transitional authority in Gaza until PA completes reform
Under the UN-backed framework, the BoP is to exercise transitional authority in Gaza until the PA has completed its reform program and can securely and effectively resume control. In the meantime, the National Committee for the Administration of Gaza is intended to serve as an interim technocratic administration.
Currently, UNRWA purports to be assisting more than 1.7 million Palestinians in Gaza, providing healthcare through 11 centers, schooling for approximately 300,000 children, and drinking water for around 820,000 people.
It also says it provides essential services to nearly six million Palestinian refugees across Jordan, Lebanon, Syria, and the West Bank.