The United Nations Relief and Works Agency for Palestine Refugees (UNRWA) Thursday expressed its hope that the United States will resume the funding it stopped in 2018, but it confirmed that this will not be sufficient to cover its budget deficit for 2021.

"We welcome the administration of the new US president, Joe Biden, to resume aid to the Palestinians, and we look forward to continuing our discussions with her about resuming funding for the agency," agency spokeswoman Tamara Al-Rifai said.

Acting US Ambassador to the United Nations Richard Mills said Tuesday that the Biden administration "intends to restore US aid programs" to support economic development and humanitarian aid to the Palestinians.

According to Al-Rifai, the financial situation of UNRWA will be "very difficult" this year, because the Agency's budget will remain at $806 million as it was in 2020, and therefore the expected income at best will not spare it the expected deficit in financing the Agency's operations.

"Therefore, we expect the occurrence of a funding crisis as of March this year, and on a larger scale, the expected deficit for this year may lead to the financial collapse of the agency," she added.

Al-Rifai said, "We are taking into account the prospect of re-engaging the new US administration, so we expect a slightly better income than it was in 2020, but this slight increase in income will not be able to cover the huge liabilities of the agency."

The agency expects a deficit of more than $200 million for the current year.

The Donald Trump administration stopped funding the United Nations Relief and Works Agency for Palestine Refugees in 2018. Its contribution was approximately $365 million annually.

UNRWA Commissioner-General Philip Lazzarini warned last November of "the worst financial crisis" in the history of the agency, which could lead to "disaster" in the Gaza Strip and increase "instability" in Lebanon.

He indicated at the time that the $70 million defecit would affect 28,000 employees, most of them refugees, in the occupied West Bank and East Jerusalem, the Gaza Strip, Lebanon and Jordan.

Founded in 1949, UNRWA runs schools and provides health services and financial assistance to 5.7 million Palestine refugees in the region.