Commissioner Karen AbuZayd said in a statement that the agency is facing "a grave and imminent crisis."

At the U.N. Relief and Works Agency's annual meeting of host governments and stakeholders, AbuZayd said budget projections indicate the agency is facing an $87 million shortfall.

Combined with unfunded projects from previous years, the agency has an overall shortfall of $160 million, the statement said.

"This will bring UNRWA closer to financial crisis than it has ever been," she said.

The agency's financial woes could compromise efforts in the Middle East, particularly in Syria, Jordan, Lebanon, the West Bank and Gaza, the statement said.