GENEVA - UNRWA, the U.N. Relief and Works Agency for Palestinian refugees, warns the recently unveiled Trump administration peace plan is likely to lead to greater instability and uncertainty for the 5.6 million refugees it assists in the Israeli occupied territories and the Middle East. It is appealing for $1.4 billion in funding for 2020.

UNWRA reports it is facing the worst financial crisis in its history at a time of growing needs of the Palestinian refugees and great political uncertainty in the Middle East. The United States, which had been UNRWA's biggest donor, stopped funding the agency in 2018. The Trump administration cut off $360 million in aid, nearly one-third of UNRWA's budget.

Acting Commissioner General of UNRWA Christian Saunders says the agency received phenomenal support from other countries in 2018. But that support waned last year, causing a funding shortfall of $55 million.

He says U.S. President Donald Trump’s recently unveiled Middle East Peace Plan is causing another body blow to the humanitarian and protection needs of Palestinian refugees. He tells VOA clashes that have erupted in the occupied territories and around Jerusalem after the plan was presented could be a harbinger of worse things to come.

"There are a lot of people that still are in a state of shock over the proposal. What will happen after that shock wears off, I do not know. We certainly have serious concerns that it will result in an escalation in clashes and in violence” he says.

Saunders adds UNRWA, which has been through similar situations before, has contingency plans to support Palestinian refugees during such times of unrest. He notes the Trump proposal would give large swathes of territory to Israel, which the United Nations and Palestinians envisioned as part of a future Palestinian state under a two-state solution.

Saunders says UNRWA has enough money to pay for its humanitarian operation until April. It is appealing to donors to respond generously. It says millions of destitute Palestinian refugees depend on UNRWA's ability to provide them with life-saving aid as well as health, education, vocational training and other essential services.