UN chief Antonio Guterres warned Tuesday of the "increasingly precarious" situation of the UN agency for Palestinian refugees known as UNRWA, saying that millions of people's livelihoods were at risk. The secretary-general said that further funding cuts for UNRWA -- which Israel has criticized as politically biased -- could "push conditions beyond breaking point." Because of insufficient funding, UNRWA has scaled back its operations since the start of the year. "As we meet here today, the safety and welfare of millions of Palestine refugees hangs in the balance," Guterres told a donor conference for the UN agency. He noted the "utterly appalling" living conditions in Gaza, violence by Israeli settlers in the West Bank and Israeli strikes on Lebanon. "It [UNRWA] faces sweeping restrictions throughout the Occupied Palestinian Territory. And a cash shortfall that imperils its work across the region," Guterres said. "I am appalled by continuing efforts to marginalize and undermine UNRWA through disinformation, smear campaigns, legislative actions, operational restrictions, diplomatic roadblocks and more," he said. Israel has long opposed UNRWA, created by the UN General Assembly in 1949, and intensified its criticism after October 7, alleging that employees participated in the deadly 2023 attack on Israel.