US Ends Funding for UNRWA: Jordan steps in, EU pledges money

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02:48

The US will also cut funding to the UN's relief agency for Palestinian refugees - that's 350 million dollars per year. This is sending host and donor countries into overdrive, and EU member states are pledging increased support. While Palestinian leaders condemn what they say is a 'de-legitimization strategy', the Israeli government has embraced the move. CGTN's Stephanie Freid in Tel Aviv has this update.

PIERRE KRAHENBUHLUNRWA CHIEF COMMISSIONER "What is being denied Palestine refugees is the opportunity of a choice. And that they really don't have. And they don't have it not because UNRWA exists but because political leaders have failed to bring about the courage, the vision and the leadership to resolve this conflict."

Back in February, UNRWA's chief told CGTN the refugee agency isn't the problem; and de-funding it will only lead to deeper humanitarian crisis. The U.S. has historically been UNRWA's most generous donor. Withdrawing support affects millions of Palestinian refugees living in Gaza, the West Bank, Jordan, Syria and Lebanon relying on UNRWA for food, education and medical support.

AYMAN SAFADIJORDANIAN FOREIGN MINISTER "I don't think it's in anybody's interests to create conditions to allow further tension - the stability, security of the Middle East is key to international security and stability."

The cut threatens stability because of its underlying agenda. Critics say trying to push UNRWA into extinction is the U.S. government's way of removing the option in any future Israeli Palestinian peace deal for Palestinian refugees to return to their homeland.

SAEB EREKATPALESTINIAN AUTHORITY LEADER "Who gave the U.S the right to approve the stealing of my land, my future, aspiration, my capital, my Aqsa Mosque, my Holy Sepulchre church. They have no right what so ever."

Israel's government, on the other hand, says an agency overhaul is long overdue.

BENJAMIN NETANYAHUISRAELI PRIME MINISTER "This will not, this will not have negative effects, it will have positive effects because the perpetuation of the dream of bringing the descendants of refugees back to Jaffa is what sustains this conflict."

EU member states are pledging increased support - within hours of the U.S. announcement, Germany's foreign minister pledged to add funds to the existing ninety-four million dollars annual contribution.

STEPHANIE FREIDTEL AVIV "Jordan is emerging as the proactive leader on this issue and will be hosting sidelines meetings at the upcoming UN General Assembly with potential donors. Stephanie Freid, CGTN, Tel Aviv."