Frozen U.S. Funding for UNRWA in Gaza Is Minimal, State Dept. Says

The State Department downplayed the significance on Tuesday of its decision to pause funding for the main U.N. aid agency in Gaza, explaining that it had already provided virtually all the money allocated by Congress for that purpose and that the Biden administration hoped the matter could be resolved quickly.

More than 99 percent of American dollars approved by Congress for the United Nations Relief and Works Agency for Palestine Refugees, or UNRWA, has been sent to the agency, the State Department spokesman, Matthew Miller, said on Tuesday.

The State Department paused the money “temporarily” on Friday after accusations by Israel that a dozen UNRWA employees participated in the Oct. 7 Hamas attacks, with some holding hostages within Gaza. At least 17 other donor nations have also suspended their funding to the agency, according to the group U.N. Watch.

Human rights groups and progressive Democrats in Congress have denounced the move, saying that it will deprive innocent Palestinians of desperately needed aid. But Mr. Miller said the State Department had sent all but $300,000 of about $121 million budgeted for UNRWA to the agency, suggesting that the near-term effect of the U.S. action within Gaza will be minor.

U.S. officials suggested that the real question is how much more money Congress will be willing to approve for an agency that many Republicans condemn for what they call anti-Israel bias and Hamas sympathies. Underscoring that uncertainty, witnesses at a House subcommittee hearing on Tuesday denounced UNRWA and called for its restructuring or replacement.

Israel’s government says that at least 12 employees of the agency participated in the Oct. 7 Hamas attack, and that UNRWA employs as many as 1,300 Hamas members. Israel estimates that the attack left roughly 1,200 people dead; another 240 people were taken hostage.