UNRWA's projected $100 million cash-flow deficit in its 2026 agencywide Program Budget threatens services for Palestinian refugees in Lebanon, while a U.S. order bars federal payments to the agency.
At a May 21 briefing, the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) said it had cut working hours and salaries by 20% for most locally recruited staff in beneficiary-facing roles. The agency said its estimate assumed donors would fulfill all pledges in full by their deadlines. The deficit applies to UNRWA's 2026 Program Budget across its operations, not to Lebanon alone.
UNRWA said it had verified about 229,000 Palestinian refugees living in Lebanon as of September 2026, including about 19,000 refugees from Syria. More than 83% live below the national poverty line, and unemployment exceeds 32%, according to the agency. Its services in Lebanon include education and health care.
Al Jazeera reported that many UNRWA schools moved to a four-day week for the 2026-27 academic year, down from five days. Doumoua al-Baitan, a mother of four, told the outlet she pays $200 a month for after-school lessons for two children, equal to her rent. “My kids cannot retain what they are taught in class,” al-Baitan told Al Jazeera.
Health services have also been affected by security conditions. UNRWA said 15 of its 26 primary health centers and clinics were operating on June 16, while 11 were closed because of security conditions. An earlier report recorded 12 of 26 facilities operating on June 2.
In February 2025, a White House executive order directed U.S. agencies not to make contributions, grants or other payments to UNRWA, referring to a 2024 law. The agency's May briefing also cited a constrained global funding environment.
