UNITED NATIONS – A review of the embattled United Nations Palestinian relief agency UNRWA, ordered by Secretary-General Antonio Guterres, has identified four possible ways forward for the organization that has lost U.S. funding and been banned by Israel.

The proposals, seen by Reuters, are: inaction that could see the potential collapse of UNRWA; a reduction of services; the creation of an executive board to advise UNRWA; or maintaining UNRWA’s rights-based core while transferring services to host governments and the Palestinian Authority.

While Guterres ordered the strategic assessment of UNRWA in April as part of his wider U.N. reform efforts, only the 193-member U.N. General Assembly can change UNRWA’s mandate.

UNRWA was established by the General Assembly in 1949 following the war surrounding the founding of Israel. It provides aid, health and education to millions of Palestinians in Gaza, the West Bank, Syria, Lebanon and Jordan.

“I believe it is imperative that Member States take action to protect the rights of Palestine refugees, the mandate of UNRWA and regional peace and security,” Guterres wrote in a letter dated on Monday and seen by Reuters submitting the UNRWA assessment to the General Assembly.

The review comes after Israel adopted a law in October, which was enacted on January 30, that bans UNRWA’s operation on Israeli land – including East Jerusalem, which Israel annexed in a move not recognized internationally – and contact with Israeli authorities.

UNRWA is also dealing with a dire financial crisis, facing a $200-million deficit.

The U.S. was UNRWA’s biggest donor, but former President Joe Biden paused funding in January 2024 after Israel accused about a dozen UNRWA staff of taking part in the deadly October 7, 2023, attack by Palestinian militants Hamas that triggered the war in Gaza. The funding halt was then extended by the U.S. Congress and President Donald Trump.

Four Options

The U.N. has said nine UNRWA staff may have been involved in the Hamas attack and were fired. A Hamas commander in Lebanon – killed in September by Israel – was also found to have had an UNRWA job. The U.N. has vowed to investigate all accusations and repeatedly asked Israel for evidence, which it says has not been provided.

Israel has long been critical of UNRWA, while UNRWA has said it has been the target of a “fierce disinformation campaign” to “portray the agency as a terrorist organization.” Guterres and the U.N. Security Council have described UNRWA as the backbone of the aid response in Gaza.

The first possible option outlined by the UNRWA strategic assessment was inaction and the potential collapse of the agency, noting that “this scenario would exacerbate humanitarian need, heighten social unrest, and deepen regional fragility” and “represent a significant abandonment of Palestine refugees by the international community.”

The second option was to reduce services by “aligning UNRWA’s operations with a reduced and more predictable level of funding through service cuts and transfer of some functions to other actors.”

The third option was to create an executive board to advise and support UNRWA’s commissioner-general, enhance accountability and take responsibility for securing multi-year funding and aligning UNRWA’s funding and services.

The final potential option would see UNRWA maintain its functions as custodian of Palestine refugee rights, registration, and advocacy for refugee access to services, “while progressively shifting service provision to host governments and the Palestinian Authority, with strong international commitment to funding.”

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(Reporting by Michelle Nichols; Editing by Rod Nickel)