The United States is urging international donors to cease funding the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), asserting that the agency has become a "subsidiary of Hamas." U.S. Ambassador Jeff Bartos, speaking at UNRWA’s annual pledging conference on July 1, advocated for shifting support to the Security Council-backed Board of Peace, which he described as offering Gazans "peace, prosperity and real durable change."

Bartos accused UNRWA of perpetuating a cycle of dependency and failing to condemn Hamas, while also citing allegations that UNRWA employees participated in the Oct. 7, 2023, attacks against Israel. He specifically criticized UNRWA schools in Gaza, alleging they indoctrinate children in hatred and glorify terrorism.

"Doing the same thing over and over, expecting a different result is the definition of insanity," Bartos stated at the conference. "And yet, here we are again, another annual pledging conference for UNRWA. Same speeches … same condemnation of Israel, same failures to condemn Hamas."

The U.S. administration champions the Board of Peace, a U.S.-led initiative established under former President Donald Trump's plan, as a superior alternative. This body aims to oversee transitional governance, reconstruction, and long-term development in Gaza, emphasizing accountable governance and economic recovery over what it alleges is a Hamas-infiltrated system.

In contrast, UN officials defended UNRWA's ongoing role and mandate. U.N. spokesman Stéphane Dujarric stated that the agency has taken "strong action" when presented with evidence of potential links to terrorist organizations. He emphasized that UNRWA fulfills a mandate given by the General Assembly and plays a crucial humanitarian role, which is also supported by the Security Council resolution that backs the Board of Peace.

"UNRWA doesn’t operate through a sort of immaculate conception," Dujarric said. "It is there because there is a mandate given to it by the General Assembly, and we continue to fulfill that mandate. It has a very important role to play on the humanitarian front."

Several European governments diverged from the U.S. stance. The United Kingdom announced £23 million in support for UNRWA, with British Ambassador James Kariuki calling the agency "indispensable" for providing essential services to Palestinian refugees across the region. France also reiterated "full support," pledging €123 million since 2023 and indicating it would soon announce its 2026 contribution. The French representative noted that allegations against UNRWA are taken seriously and that the agency is implementing recommendations to enhance neutrality and transparency.

The funding debate coincides with calls from the watchdog group UN Watch for UN Secretary-General António Guterres to waive immunity for former UNRWA Commissioner-General Philippe Lazzarini. UN Watch claims to have provided Lazzarini and his administration with evidence of alleged Hamas support and affiliation among UNRWA employees, arguing such a waiver would allow for an independent criminal investigation.

Hillel Neuer, executive director of UN Watch, stated that his organization informed Lazzarini about "supporters of terrorism — in some cases, actual members of Hamas — working as teachers, working as school principals," characterizing the problem as systematic rather than isolated. Neuer asserted that waiving immunity would permit prosecutors to examine the evidence without prejudging guilt.

When asked about waiving Lazzarini's immunity, Dujarric responded that UN Watch is not a judicial authority and that the U.N. has always cooperated with national authorities in investigations. He did not directly address the waiver request.