In an AP interview on February 6, 2025, UNRWA chief Philippe Lazzarini warned of an 'existential threat' to the agency amid the U.S. decision not to resume funding, a policy initiated during the Trump administration. Lazzarini condemned proposals for forced displacement—as he labeled them ethnic cleansing—and announced efforts to secure alternative funding from Gulf donors, emphasizing the agency’s commitment to continue providing essential services despite politically motivated disinformation campaigns.

On February 4, 2025, the Trump administration issued an executive order that permanently cut off funding to UNRWA as part of its broader retreat from international human rights bodies. Critics argue that this politically motivated move not only punishes an agency that provides essential services to Palestinian refugees, but also risks exacerbating regional extremism by deepening humanitarian crises.

Amid allegations of staff involvement in the Oct. 7 attacks and claims of infiltration by Hamas-linked operatives, Israeli authorities banned UNRWA from operating in Gaza. An independent investigation noted that a small number of UNRWA employees may have been involved, but humanitarian groups warn that the ban, politically motivated and reflective of authoritarian pressure, undermines essential support for Palestinian refugees.

On October 6, 2024, the Knesset’s Foreign Affairs and Defense Committee passed two bills aimed at banning UNRWA from operating in areas under Israeli control. The proposed legislation threatens to revoke long-established immunities and disrupt essential services provided by UNRWA to millions of Palestinian refugees. Human rights groups have issued a joint statement, urging world leaders to act against these measures, emphasizing that dismantling UNRWA would severely harm Palestinian communities and undermine international humanitarian norms.

The article details a series of coordinated efforts by U.S. and Israeli authorities to undermine UNRWA through funding suspensions, legislative bans, and moves to replace the agency. Despite these political and economic pressures that aim to delegitimize its humanitarian mandate, UNRWA continues to provide essential services to Palestinian refugees.

On March 4, UNRWA's local Staff Union in the West Bank resumed a general strike over a dispute concerning salary increases. This labor dispute has led to the interruption of basic services for nearly 900,000 refugees, with significant impacts on health and education.