US State Department spokesman Matthew Miller said on Wednesday that the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is not a terrorist organization, but rather a UN organization that provides much-needed humanitarian services, and urged the Israeli Knesset to rescind its legislation.

"Let me say a few things about this," Miller said in response to a question from the Jerusalem correspondent about the Knesset's progress on legislation that would classify UNRWA as a terrorist organization. "First, UNRWA is not a terrorist organization, and we urge the Israeli government and the Knesset to stop moving this legislation."

“We have been clear about the important role that UNRWA plays in providing humanitarian and other vital assistance to Palestinians in Gaza — and throughout the region, not just in Gaza,” Miller added. “I think you know that the United States provides the majority of funding for humanitarian efforts in Gaza through the United Nations, and we expect to continue to do so.”

"As you know, we are currently prohibited by law from providing assistance through UNRWA, but that does not mean that we do not support the work that they do and do not support other ways to get humanitarian assistance," Miller explained.

“So I would say — and you’ve heard us say this before — that the attacks by the Israeli government on UNRWA are completely unhelpful,” Miller repeated. “They’re doing nothing to advance the cause of delivering humanitarian assistance to civilians in Gaza. So we will continue to support the work that UNRWA is doing in the region, while also recognizing the need for reform — which you’ve heard UNRWA and the UN talk about as well.”

The Israeli Knesset on Tuesday voted in favor of a series of bills that would shut down the United Nations Relief and Works Agency for Palestine Refugees (UNRWA). One piece of legislation would designate UNRWA a terrorist entity, barring the agency from operating in Israel, stripping UNRWA employees of privileges granted to other UN employees, and designating the organization a terrorist group.

The bill passed its first reading by a large majority. The legislation will now go back to committee and must be voted on in the future before it becomes Israeli law. UNRWA spokeswoman Juliette Touma called the bill “another attempt in a broader campaign to dismantle the agency,” adding that “such steps are unheard of in the history of the United Nations.”

Since October 7, Israel has targeted UNRWA in a propaganda campaign, targeting the organization’s buildings and staff. Last January, Israel claimed to have compiled an intelligence file that showed UNRWA employees were involved in a Hamas attack on southern Israel.

Tel Aviv failed to provide evidence to support these assertions. However, much of the political damage was done when a group of countries cut funding to UNRWA, and the US Congress prevented Washington from sending money to the agency until 2025.

In Gaza, the IDF targeted UNRWA staff and buildings. In approximately 500 attacks, 196 UNRWA staff were killed. In addition, approximately 200 buildings were bombed, killing more than 500 Palestinians who had taken refuge in UNRWA facilities.

The latest incident occurred on Sunday when Israeli forces opened fire on a UN aid convoy heading to Gaza City, UNRWA Director-General Philippe Lazzarini said on X.

UNRWA provides life-saving assistance in Gaza, as well as education, medical support and other services to millions of Palestinians in the region.