Controversy plagued UN agency that employed Oct. 7 terrorists facing new problems as country redirects funding
Pressure is building on the controversial U.N. agency UNRWA over its alleged and extensive ties with terror leaders that has propelled hatred for Israel and support for terror through its curricula. Even as 159 countries in the U.N. General Assembly voted in favor of a resolution affirming to "fully support" UNRWA, last week, Sweden announced on Friday that it has decided to end funding to UNRWA due to a ban placed on the agency by the Israeli government and will redirect Gaza aid to other organizations.
Yet, while the U.N. continues to show solidarity with UNRWA, two informed sources confirmed to Fox News Digital that in spite of the vocal solidarity, there is dissension among the ranks.
One U.N. source explained that "several agencies have had behind-the-scenes discussions" about who might "take over and run" UNRWA programming. "One of the main and most notable agencies doing so is the United Nations Development Programme," the source claimed.
"The UNDP has come forward and said that they can take over from UNRWA to advance peace," the source said. They noted that U.N. Secretary-General António Guterres "shot those requests down," leading to an "internal conflict." The source elaborated that recent events "show that there are elements of the U.N. that recognize the challenges and clear issues with UNRWA," but that "even as other agencies are ringing the alarm bells," their "offers are being shot down at the highest levels" of the U.N.
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Israel Hayom newspaper also reported that Guterres has passed over the UNDP’s offer to take on increased work in the Palestinian territories. The newsaper quoted "fundamental opposition" from the Secretary-General to the UNDP’s "willingness to take on significant areas of responsibility, such as fuel distribution, waste removal and rubble clearance." It also reported that "preparations are already underway among international aid organizations, led by UNDP, to expand their activities in the Strip."
Fox News Digital asked Guterres’ spokesperson, Stéphane Dujarric, about Guterres’ position on the UNDP’s offer to take on UNRWA’s work and inquired about Guterres’ thoughts on recent reports of the agency’s leadership’s ties to terrorists and its difficulties raising funds after news arose that some UNRWA members had participated in the terror attacks of Oct. 7.
Dujarric told Fox News Digital that "many different U.N. agencies have a role to play, and are playing a role, in humanitarian and development support to the Palestinian people." He reiterated that, "as we’ve said many times before, no other agency in the U.N. system can replace UNRWA given the scope of its work, notable in health and education. All U.N. agencies, including UNDP, have the same position."
Dujarric explained that Guterres "will continue to do his utmost to work for an end to this conflict, the unconditional and immediate release of all hostages held by Hamas and other Palestinian groups in Gaza, and for full humanitarian access in Gaza. There are also needs to be a restoration of a political horizon for a two-state solution for the sake of Israelis and Palestinians."
Fox News Digital asked the UNDP whether it had proposed that it could take on UNRWA’s role and asked how seamless that transfer could be and whether a UNDP-led effort might create an atmosphere in which peace and a two-state solution could be reached.
A UNDP spokesperson said that the "UNDP does not propose, nor does it support, being an alternative to UNRWA. UNDP’s position on UNRWA’s irreplaceability is aligned with the U.N. Secretary General’s and is a matter of public record."
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The spokesperson also sent a statement standing by Guterres’ statement that UNRWA is the "principal means" for supporting Palestinian refugees and that "there is no alternative to UNRWA."
The "irreplaceability" of UNRWA has been questioned, including by senior fellow at the Tel Aviv Institute Hen Mazzig, who recently stated on X that only 13% of aid to the Palestinian people is distributed by UNRWA.
Fox News Digital asked UNRWA to confirm this figure. A spokesperson from the agency said that since October 2023, the agency "has provided over 6.8 million primary health care consultations," claiming it represented "60% of primary healthcare consultations currently provided in the Gaza Strip." The spokesperson also stated that UNRWA provides "50% of the food security response," and "assisted hundred of thousands of people with essential mental health and psychosocial support services," as well as providing "essential logistical and infrastructure support to the entire humanitarian system."
Fox News Digital asked the Israel Defense Forces about the role UNRWA plays in relation to other humanitarian groups coordinating aid in Gaza. A security official said the agency is a "weak player," compared with entities like World Food Program, World Central Kitchen, UNICEF, the World Health Organization, and American Near East Refugee Aid (ANERA), which "play a more central role." The official said that these agencies "have their own logistical chains and can work independently from UNRWA."
UNRWA’s fundraising ability has decreased since credible information emerged showing that members of UNRWA had infiltrated Israel on Oct. 7, 2023. The U.S. had provided $121 million to UNRWA between October 2023 and January 2024, but then cut funding to the agency through March 2025.
The UNDP is unhindered by these issues and provides a variety of services in the region. A UNDP spokesperson told Fox News Digital that UNDP has funded about a third of its Programme of Assistance to the Palestinian People’s $270 million Gaza Emergency Response and Early Recovery Programme.
The spokesperson told Fox News Digital that "as a lead development agency within the UN system, UNDP works closely with our sister humanitarian agencies to embed early recovery efforts – such as rehabilitating crucial infrastructure and cash-for work programs – into emergency responses."
"In contexts such as the occupied Palestinian territory, Lebanon, and Syria, we have carried out a variety of early recovery initiatives tailored to specific needs and conditions on the ground," the spokesperson continued." This has entailed "working with local partners to deliver a range of activities including debris removal from roads to facilitate access to critical services, working closely with local service providers and the private sector to restore essential services such as solid waste management, supporting the rehabilitation and expansion of water supply networks to increase access to clean water, and has implemented solar-powered energy systems. We also strengthen government capacities on emergency response and recovery planning and support vocational training programmes for women."
Hillel Neuer, Executive Director of U.N. Watch, told Fox News Digital that aside from UNRWA, there "are several agencies on the ground who are doing significant work in distributing humanitarian aid."
"Around the world, when there is a crisis of some kind," Neuer said that "you get a whole cluster of U.N. agencies," including the World Health Organization, World Food Programme, UNICEF … and UNDP, which combine forces to "distribute aid to millions of people." Neuer said that "the notion that is put forward that for some reason a tiny strip of land on the Gaza Strip is the only place in the world where those agencies cannot operate" is "absurd and false."
UN Watch has raised the ire of UNRWA by beginning to release a 150-page dossier showing URNWA leaders meeting with representatives of terror groups. Though UNRWA Commissioner-General Philippe Lazzarini referred to the reports as "disinformation," Neuer explained that UNRWA simply "cannot handle the truth." Neuer said that UN Watch assembled its dossier by screenshotting data and photographs that were "hidden in plain sight" on the internet and social media." He added that more of UN Watch’s dossier is set to emerge the coming week.
The U.S. was among nine nations to dissent from the General Assembly’s resolution in support of UNRWA.
Ambassador Robert Wood, the alternative representative for special political affairs, explained the dissension on Dec. 11, both noting that while URNWA is a "critical lifeline," the "resolution on UNRWA operations also has serious flaws." Wood cited how the proposal fails "to create a path forward for restoring trust between Israel and UNRWA," and that the resolution "denigrates Israel’s actions in Gaza without addressing the central reason for them, namely Hamas’ unprovoked October 7 attack and the terrorist group’s deplorable behavior in the interim."
"More than 14 months into this conflict, some delegations here in New York cannot bring themselves to acknowledge — let alone condemn — Hamas’ role in instigating a conflict that has visited so much pain, suffering, and anguish on the people of Gaza," Wood wrote, adding that "we deeply regret that the drafters chose to try to score political points, rather than pursue a resolution which could have provided unanimous support to UNRWA, addressed credible allegations about the activities of some of its personnel, and ultimately bolsters UNRWA’s vital humanitarian mission."
While voting on UNRWA’s future, the General Assembly did note the issues with the agency, explaining that URNWA needed to implement the recommendations set by an independent reviewer and that there must be "immediate efforts" to address UNRWA’s "financial and operational crises."
The General Assembly also emphasized that it "strongly warns against any attempts to dismantle or diminish the operations and mandate of the Agency," noting the humanitarian consequences that millions of Palestinians would face if its work were interrupted or suspended.
In an effort to assert the primacy of his organization despite snowballing evidence that its members have hindered efforts to create peace in the region, UNRWA Commissioner-General Philippe Lazzarini penned an op-ed imagining the possibly "dystopian" outcome of a decision to dismantle UNRWA. Supposing that a two-state solution hinges on the agency's continued operations, Lazzarini urged that "we still have a window of opportunity to avert a cataclysmic future where firepower and propaganda construct the global order."
U.N. Watch's Neuer disagreed, noting "UNRWA is an arsonist masquerading as a firefighter," he said. "Only by ending this terror-infested agency with the pathological aim of perpetuating hatred, resentment and dependency, can Palestinians move forward to a future of hope and peace."