US President Donald Trump’s Board of Peace has declared that the United Nations Relief and Works Agency has “no place in the new Gaza,” signaling a direct effort to replace the organization at the center of the international aid system for Palestinians.
The statement came as UN member states gathered in New York for UNRWA’s annual pledging conference, where the agency sought new contributions to cover a reported $100 million shortfall.
For decades, UNRWA has presented itself as an indispensable humanitarian institution. Its critics, however, argue that it has become something quite different: a permanent bureaucracy sustaining Palestinian refugee status across generations while allowing its schools, facilities, and personnel to be penetrated by Hamas and other armed groups.
See: Gaza dissident exposes Hamas control of UNRWA, media complicity
The Trump administration is now asking donor states to choose between preserving that system and funding an alternative framework through the Board of Peace.
Jeff Bartos, the US representative for UN management and reform, told delegates that the annual conference had become an exercise in repetition: the same appeals for money, the same condemnations of Israel, and the same reluctance to confront Hamas.
He accused UNRWA schools in Gaza of promoting hostility toward Jews and glorifying violence, and said governments should stop underwriting an organization that had effectively become a subsidiary of Hamas.
The criticism follows renewed scrutiny of UNRWA personnel after evidence emerged linking employees to terrorist organizations and, in some cases, to the Hamas-led massacre in southern Israel on Oct. 7, 2023.
A US foreign-aid watchdog reportedly identified more than 100 current or former UNRWA employees with suspected ties to Hamas or involvement in the attacks. UNRWA later dismissed 70 staff members, while disputing broader allegations against the agency.
Israel’s ambassador to the United Nations, Danny Danon, said the dismissals confirmed warnings Jerusalem had issued for years.
UNRWA officials continue to defend the agency, insisting that educational materials are reviewed and that disciplinary action is taken when credible evidence is provided. Its acting commissioner-general also acknowledged that endless dependency is not sustainable and that Palestinians need greater economic opportunity.
That concession goes to the heart of the dispute.
UNRWA was established as a temporary relief mechanism. Seventy-seven years later, it has become a permanent institution managing a permanent refugee population.
The Board of Peace is arguing that Gaza cannot be rebuilt by restoring the structures that helped produce its collapse. A new Gaza, Washington says, requires a new system—one designed around accountability, reconstruction, and eventual independence from international aid, rather than another generation trapped inside an inherited political grievance.
Want more news from Israel?
Click Here to sign up for our FREE daily email updates
