UNRWA Fires 600 Staff as Gaza's Last Lifeline Faces Collapse

After 18 years as a teacher, Maryam Shaaban fainted when she learned she was among 600 employees dismissed from UNRWA, the latest devastating blow in Israel's systematic campaign against the UN agency for Palestinian refugees.

Earlier this month, UNRWA announced harsh austerity measures including a 20 percent salary cut for local Gaza staff, reduced working hours, and contract terminations for employees outside Gaza who had been on "exceptional leave." The reason: a $220 million budget shortfall threatening the agency's core operations.

For Shaaban, who lost her 22-year-old daughter and brother's entire family in an Israeli airstrike, the dismissal felt like a final betrayal. "Wasn't it enough that I spent all this time grieving for my injured children?" she asked, her voice breaking. "By what law does this happen?"

Israel's Systematic Campaign

The financial crisis isn't happening in a vacuum. Israel has escalated its campaign to dismantle UNRWA to unprecedented levels, repeatedly accusing the agency of complicity with Palestinian armed groups without providing verifiable evidence.

In 2025, the Israeli Knesset passed legislation effectively banning UNRWA's operations in areas it considers part of "Israeli sovereignty," including occupied East Jerusalem. This month, Israeli bulldozers partially destroyed UNRWA's headquarters in East Jerusalem, with far-right lawmakers present at the scene.

Since October 2023, more than 380 UNRWA staff members have been killed in Israeli attacks in Gaza—an unprecedented toll for any UN agency.

UN Secretary-General António Guterres has warned Prime Minister Benjamin Netanyahu that he could take Israel to the International Court of Justice if it doesn't repeal laws targeting UNRWA and return seized assets.

Why Gaza Bears the Brunt

UNRWA operates in six areas—Gaza, the occupied West Bank, Jerusalem, Jordan, Lebanon, and Syria—but the austerity measures disproportionately target Gaza, sparking widespread anger among staff.

Mustafa al-Ghoul, head of UNRWA's staff union in Gaza and a dentist with 29 years of service, questioned the logic: "All the measures started in Gaza, as if Gaza is not already overwhelmed by death, destruction, and hunger."

The timing is particularly cruel. Gaza's population is 70 percent Palestinian refugees, making UNRWA essential for education, healthcare, and social services. The agency has been the backbone of minimal stability amid repeated Israeli wars and blockades.

Jihan al-Harazin, a mother of three displaced in Gaza City, captured the reality: "UNRWA was the backbone of our survival, in health, education, and food. Now, there is nothing."

The Bigger Picture: Erasing Palestinian Identity

Amjad Shawa, director of the Palestinian NGOs Network, argues that weakening UNRWA serves Israel's broader agenda to erase Palestinians' right of return and compensation—a key goal of successive Israeli governments.

"There is a war being waged against humanitarian work," Shawa said, noting Israel's recent ban on dozens of international aid organizations. "We are paying the price for our commitment to international humanitarian law, a law the Israeli occupation refuses to uphold."

The financial shortfall comes amid declining international donations, particularly after several donor states froze contributions following Israeli allegations against UNRWA employees—allegations that were largely unsubstantiated but caused lasting damage.