Displaced Palestinian children sit on the back of trucks waiting along Salah al-Din road in Nuseirat as people make their way to the northern part of the Gaza strip. AFP
Signalling a shift in the US position on the agency by the administration of President Donald Trump, a US envoy voiced support for the decision and called for a probe into Israeli claims UNRWA sites were used by the Palestinian Hamas group.
UNRWA's offices and staff in Israel play a major role in the provision of healthcare and education to Palestinians, including those living in Gaza, devastated by 15 months of the Israeli war.
The Israeli war destroyed hospitals and sparked outbreaks of infectious disease, while hundreds of thousands of Gazans faced starvation conditions and have depended on food aid.
The organization says it has brought in 60 per cent of the food to have reached Gaza since the start of the war.
"The legislation concerning UNRWA activities in Israel will officially come into force in 48 hours on January 30... UNRWA must cease its operations and evacuate all premises it operates in Jerusalem," the Israeli envoy, Danny Danon, told the UN Security Council.
The legislation forbids UNWRA from operating within Israel and prohibits any contact between Israeli officials and UNWRA.
"Israel remains committed to its commitments under international law.", the Israeli envoy claimed.
Israeli orders for UNRWA to leave its offices in East Jerusalem prompted a strongly worded response from UN chief Antonio Guterres who demanded Israel "retract it."
His intervention sets up a possible showdown between authorities and UNRWA staff when the deadline expires Thursday.
'Jeopardizing' peace
Israel claims that a dozen UNRWA employees were involved in the October 7, 2023, Hamas operation, and insists that other organizations can pick up the slack to provide essential services, aid and reconstruction -- something the UN disputes.
A series of probes, including one led by France's former foreign minister Catherine Colonna, found some "neutrality-related issues" at UNRWA -- but stressed Israel had not provided evidence for its chief allegations.
The agency's chief Philippe Lazzarini said UNRWA's capacity "far exceeds that of any other entity."
He called Israel's actions against UNRWA a "relentless assault... harming the lives and future of Palestinians across the occupied Palestinian territory."
However, the United States threw its weight behind the move of its closest Middle East ally, accusing Lazzarini of overstating the impact of the decision.
"The United States supports the implementation of this decision," said Dorothy Shea, a United States representative to the UN.
"UNRWA exaggerating the effects of the laws and suggesting that they will force (out) the entire humanitarian response is irresponsible and dangerous," she said.
"UNRWA is not and never has been the only option."
Under Trump's predecessor Joe Biden, Washington had supported UNRWA's continuing its work -- but withheld funding at the insistence of Congress.
On Israeli claims that Hamas used UNRWA sites, which in Gaza include schools, clinics and depots, to hold hostages, Shea said: "it is vital for a full and independent investigation to assess these very serious allegations."
The Palestinian ambassador to the UN Riyad Mansour said only UNRWA and the Palestinian Authority could help his people.
"Yet Israel is demanding that everyone forsake them and work around them, setting us all up for failure," he said.
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