Lack of sufficient funds is jeopardizing the ability of the UN relief agency for Palestine refugees (UNRWA) to operate, the head of the agency said on Thursday.

More than nine in 10 children in Gaza are displaying signs of aggressive behaviour linked to more than two years of war between Hamas and Israel, welfare agencies have reported.

A month into the ceasefire in Gaza, families continue to slowly head back to their former homes and communities wherever access is allowed, the UN agency that assists Palestine refugees, UNRWA, said on Monday.

Speaking to the General Assembly,UNRWACommissioner-General Philippe Lazzarini, argued that the agency is indispensable for the stability and rebuilding of the shattered Gaza Strip and the wider region.

He underlined that a virulent disinformation campaign has tarnished its reputation and strangled its funds.

Curtailing or ending UNRWAs services will have grave consequences for the region, warned Mr. Lazzarini. In Gaza, it would undermine stabilisation and recovery, jeopardising a political path forward.

Guarding against radicalisation

UNRWA has been operating since 1950, providing basic services, protection and humanitarian assistance to Palestine refugees in Jordan, Lebanon, the Syrian Arab Republic, the West Bank, including East Jerusalem, and the Gaza Strip.

In 2024, the agency provided emergency food assistance to approximately 1.9 million Palestinians in Gaza. It also delivers 40 per cent of all primary healthcare and conducts in-person learning for over 50,000 children.

We have succeeded in educating generations of Palestinians who are thriving global citizens, enriching communities across the region and beyond, in Europe and North America, Mr. Lazzarini said.

Briefing journalists in New York later, he added thatif the rubble and the trauma become the new learning environment, there is indeed it is a risk that these children in the future be exploited and join armed groups or be radicalised.

Fears of instability as funding slumps

The agency has faced scrutiny over Israeli allegations that UNRWA staff were involved in the 7 October attacks, and the United States, traditionally the agencys largest donor, halted all funding in 2023.

The working group on Palestine raised concerns in the General Assembly about the agencys massive underfunding and its potential destabilising impact on the wider region, saying its imperative that UNRWA as an indispensable agency continues to receive the necessary support to resolve its financial crisis and to contribute to alleviate the catastrophic situation in Gaza.

Ambassador Feda Abdelhady, Deputy Permanent Observer of the State of Palestine to the UN, described the agency as indispensable and irreplaceable,

We urge all States to remain steadfast and principled in their support of UNRWA, with due recognition of its vital role.