UNRWA could lay off thousands as Trump’s Board of Peace prepares for post-agency Gaza - report

UNRWA is considering a major restructuring that could see thousands of employees laid off and some responsibilities transferred to other bodies, including US President Donald Trump's Board of Peace, according to multiple media reports citing diplomatic sources. The proposal is led by acting commissioner-general Christian Saunders amid a severe financial crisis.

The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is considering a major restructuring that could see thousands of its employees laid off and some of its responsibilities transferred to other bodies, including US President Donald Trump's Board of Peace (BoP), according to multiple media reports citing diplomatic sources. The reported proposal is spearheaded by UNRWA's acting commissioner-general, Christian Saunders, and comes as the agency faces a severe financial crisis. The BoP, established under a framework endorsed by the UN Security Council in November 2025, is tasked with overseeing Gaza's transitional governance, reconstruction, and economic recovery. The BoP has been explicit in its opposition to UNRWA, stating in a July 1 statement that "UNRWA has no place in the new Gaza." However, the Associated Press reported that BoP representatives have held private meetings with UNRWA officials, and a BoP official acknowledged that some programs and vetted employees could continue. According to Israel Hayom, discussions have taken place about transferring some of UNRWA's responsibilities to the BoP and other bodies, as well as to the Palestinian Authority in the West Bank. Saunders told Anadolu Agency on October 20 that the agency's deficit stood at approximately $70 million, warning that without immediate funding he would have to take regrettable actions to pay staff salaries. The head of the Arab Staff Union in Gaza said UNRWA had dismissed around 1,000 staff in Gaza and let 2,000 retire without replacing them, leaving roughly 10,500. Saunders confirmed the figure of 10,500 personnel in Gaza. Separately, Swiss newspaper Le Temps reported that Saunders plans for UNRWA to close its doors within four or five years, though this has not been independently verified.