Jordan Faces Severe Impact if UNRWA Funding Does Not Resume

By Suleiman Al-Khalidi

AMMAN – Jordan’s already struggling economy is set to face even greater challenges if several donors continue to suspend funding for the U.N. agency for Palestinian refugees, resulting in potential cuts to essential services, warned the agency’s country head on Tuesday.

"The current funding suspension is jeopardizing the continuation of these services after the end of February. It will have severe consequences for our operations," stated Olaf Becker, the Jordan director of the U.N. Relief and Works Agency (UNRWA).

UNRWA, responsible for providing healthcare, education, and other vital services, has been plunged into crisis following allegations that 12 out of its 13,000 staff in Gaza were involved in the October 7 Hamas-led attack on Israel, which triggered the ongoing Israel-Hamas conflict. These allegations have triggered significant donors to halt their funding.

Jordan, positioned at the center of the Arab-Israeli conflict, hosts 2.4 million Palestinian refugees, the highest number among Israel’s neighboring countries. A substantial portion of its populace is of Palestinian descent.

The Jordanian government is already contributing approximately $1 billion in infrastructure and essential services to 10 Palestinian camps across the nation. UNRWA operates schools and health services within these camps, assisting nearly 400,000 residents, Becker noted.

With 7,000 employees on its payroll, UNRWA is one of the largest employers in Jordan, infusing over $120 million in salaries into the local economy each year. Its services facilitate support for over one million Palestinian refugees in the country, typically at 20% lower cost than the state would incur for comparable services, Becker added.

"Our primary option would be to scale down services, though that poses a challenging dilemma—should we prioritize healthcare, education, or sanitation?" Becker remarked. "Schoolchildren may have nowhere to go, which could harm social cohesion in Jordan."

As a steadfast ally of the United States, Jordan stresses the importance of empowering UNRWA, which was established in 1949 to fulfill its mandate following the first Arab-Israeli war. During a visit to the White House on Monday, King Abdullah of Jordan emphasized that UNRWA’s work in the kingdom is "vital" and that it is essential for the agency to receive continued support.

Sheri Ritsema-Anderson, the U.N. Resident Coordinator in Jordan, warned that no other U.N. agency could swiftly assume UNRWA’s role or replicate its cost structure. Jordanian officials also contend that dismantling UNRWA would undermine the Palestinians’ internationally recognized right to return to their homes in Israel or receive compensation for their displacement.