The United States is still not clear about how it sees the future role of the United Nations Relief and Works Agency (UNRWA), its chief said on Friday, warning that jettisoning it would create a black hole similar to Iraq after 2003.

Washington was long UNRWA's biggest donor, but froze funding in January 2024 after Israel uncovered strong proof indicating that multiple members of UNRWA staff took part in Hamas's October 7 massacre.

"There is no definitive answer, because the interest of the US is also to be successful in this process, and if you get rid of an agency like ours before you have an alternative, you are also creating a huge black hole," UNRWA head Philippe Lazzarini told Reuters on the sidelines of the Munich Security Conference.

"Remember what happened in Iraq in 2003 when the entire administration had been dismantled. There was no alternative, and people were left without any services," he said in an interview.

No more cuts foreseen, Lazzarini says

Lazzarini, who leaves his post at the end of March, said UNRWA did not foresee any more cuts in the immediate term and will continue to offer public health and education services.

IDF finds Hamas weapons cache in UNRWA bag in Rafah, April 27. 2025.
IDF finds Hamas weapons cache in UNRWA bag in Rafah, April 27. 2025. (credit: IDF SPOKESPERSON'S UNIT)

He urged Gulf Arab countries to increase their support because their contribution did not match their strong expression of solidarity with Palestinian refugees.

Israel's parliament passed a law in October 2024 banning the agency from operating in the country and prohibiting officials from having contact with it.