UNRWA could lay off thousands as Trump’s Board of Peace prepares for post-agency Gaza - report

UNRWA is the United Nations Relief and Works Agency for Palestine Refugees in the Near East. It provides direct services to Palestinian refugees rather than only coordinating aid. Its role matters because millions of people rely on those services for daily needs, especially in Gaza and neighboring countries.

In Gaza, UNRWA says it runs 11 healthcare centers, educates about 300,000 children, and supplies drinking water to roughly 820,000 people. These programs operate alongside other essential assistance. The agency also says it serves nearly six million Palestinian refugees across Jordan, Lebanon, Syria, and the West Bank.

UNRWA is now facing a severe financial crisis and possible restructuring. Reports say some responsibilities could move to the Board of Peace, the Palestinian Authority, or other bodies. The article also reports that the agency has dismissed about 1,000 Gaza staff and allowed 2,000 to retire without replacement.

The reported restructuring would reduce UNRWA’s institutional role and shift some of its responsibilities to other organizations. The proposal is reportedly being led by acting commissioner-general Christian Saunders. It matters because UNRWA currently delivers major services to Palestinians, while the agency faces a severe financial crisis and political opposition.

Reports describe possible transfers to Trump’s Board of Peace and, in the West Bank, to the Palestinian Authority. The Board of Peace has said UNRWA has no place in the new Gaza. Yet representatives have privately met UNRWA officials, and one official said vetted employees and effective programs might continue under different arrangements.

The plan remains a reported proposal, not a completed transfer. Le Temps reported that Saunders wants UNRWA to close within four or five years, but that claim has not been independently verified. The agency has already dismissed around 1,000 Gaza staff and allowed 2,000 retirements without replacement.

UNRWA’s operation is large despite recent staff reductions. Christian Saunders said the agency has 10,500 personnel on the ground in Gaza. The Arab Staff Union’s Mustafa Al-Ghoul said about 1,000 staff had been dismissed and 2,000 had retired without replacement, leaving roughly 10,500 workers.

The agency says it assists more than 1.7 million Palestinians in Gaza. Its services there include healthcare through 11 centers, schooling for approximately 300,000 children, and drinking water for around 820,000 people. These figures show how many daily services could be affected by restructuring or funding cuts.

UNRWA also says it provides essential services to nearly six million Palestinian refugees across Gaza, Jordan, Lebanon, Syria, and the West Bank. The article does not give a single total for schools or all facilities. It does report that the agency faces a $70 million deficit.

UNRWA is facing a financial crisis because it lacks enough funding to cover its operations and payroll. Acting commissioner-general Christian Saunders said the agency’s deficit stood at approximately $70 million. The shortfall is central to the restructuring proposal because leaders are trying to keep the agency functioning with fewer resources.

Saunders warned that, without money very soon, he would have to take regrettable actions to finish the year and pay staff salaries. The agency has already reportedly dismissed around 1,000 employees in Gaza and allowed 2,000 to retire without replacing them. Those steps reduce costs but also shrink capacity.

The immediate consequences could include further layoffs, program reductions, or transfers of services to other organizations. The article does not say exactly which programs would close. It does make clear that healthcare, education, water provision, and other assistance could be affected if funding does not arrive.

Trump’s Board of Peace is a body established under a framework endorsed by the UN Security Council in November 2025. Its assigned mission covers Gaza’s transitional governance, reconstruction, economic recovery, and coordination of humanitarian assistance. It therefore sits at the center of proposed changes to how Gaza is administered and supported.

Under the framework, the Board of Peace would exercise transitional authority until the Palestinian Authority completes reforms and can securely and effectively resume control. During that period, the National Committee for the Administration of Gaza is intended to operate as an interim technocratic administration.

The Board has openly opposed UNRWA’s institutional role, saying the agency has no place in the new Gaza. However, its representatives have reportedly held private meetings with UNRWA officials. A Board official said effective programs and vetted employees might continue, even if UNRWA itself no longer operates institutionally.

If UNRWA’s responsibilities move, the article identifies several possible recipients: Trump’s Board of Peace, the Palestinian Authority, and other bodies. It does not provide a finalized division of labor. This uncertainty matters because UNRWA currently delivers healthcare, schooling, drinking water, and broader humanitarian assistance.

The Board of Peace is the clearest possible replacement in Gaza because its mandate includes transitional governance and coordination of humanitarian assistance. The article says some UNRWA programs and vetted employees could continue if they proved effective and accountable. It does not specify whether the Board would directly run clinics, schools, or water services.

Some responsibilities could reportedly move to the Palestinian Authority in the West Bank. The National Committee for the Administration of Gaza is also intended to serve as an interim technocratic administration. However, the article does not say which body would take over each sector, so the future structure remains unresolved.

UNRWA was established in 1949, after the war surrounding Israel’s creation, to provide relief and assistance to Palestinian refugees. This historical context comes from established background knowledge, not the article itself. The article identifies UNRWA as the United Nations agency set up specifically for Palestinian refugees and emphasizes its continuing service role.

The international system treats Palestinian refugees through a separate UN agency and mandate. UNRWA directly provides services such as education, healthcare, water, and relief in Jordan, Lebanon, Syria, the West Bank, and Gaza. Most other refugee populations generally fall under the UN High Commissioner for Refugees, or UNHCR, which has a broader worldwide protection mandate.

This separate system explains why UNRWA’s possible closure is so significant. Its services reach nearly six million people, and no replacement structure has been finalized. The article reports possible roles for the Board of Peace, the Palestinian Authority, and other bodies, but does not describe the agency’s founding or the legal distinction in detail.