A man handles fallen cables at the Jerusalem HQs of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) as Israeli forces dismantled the building in East Jerusalem, Jan. 20, 2026. (Credit: Ammar Awad/Reuters)
Israel's cabinet on Sunday approved a plan to build a defense compound on the site of the recently demolished premises of the United Nations Relief and Works Agency (UNRWA) in East Jerusalem.
Israel in January demolished structures inside the U.N. Palestinian refugee agency's East Jerusalem compound after seizing the site last year, in an act condemned by the agency as a violation of international law.
In a joint statement, the Defense Ministry and Jerusalem Municipality said the new compound would include the establishment of a military museum, a recruitment office, and a defense minister's office. Defense Minister Israel Katz called the decision one of "sovereignty, Zionism, and security."
UNRWA had not used the building since the start of last year after Israel ordered it to vacate all its premises and cease its operations. A UNRWA spokesperson declined to comment on the Israeli plan. UNRWA operates in Israeli-occupied East Jerusalem, as well as also in Gaza, the West Bank, and elsewhere in the Middle East, providing schooling, healthcare, social services, and shelter to millions of Palestinians.
Moreover, the Israeli government has approved a proposal put forward by Foreign Minister Gideon Saar and Deputy Prime Minister Yariv Levin to provide financial assistance to countries that move their embassies to Jerusalem, according to several Israeli media outlets, including Haaretz and Ynet.
Under the proposal, this aid would cover expenses related to establishing or relocating embassies in the holy city, as well as accommodation and infrastructure solutions.
During the cabinet meeting, Prime Minister Benjamin Netanyahu also stated that he intended to allocate funds to protect the Western Wall, which was endangered by Iranian missile fire during the war that Israel and the United States launched against Iran on 28 February, and which is currently still contained by a fragile truce.
Humanitarian convoy reaches Rmeish, Ain Ibl, Dibil despite obstacles