"I was today in Gaza to launch a campaign entitled 'Dignity is Priceless' which we launched following the announcement by the United States of its reduced contribution to UNRWA," Krahenbuhl told reporters via video conference.
The United States has reduced its contribution for 2018 to $60 million, a significant decrease from the $363 million the country provided last year, Krahenbuhl said.
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The agency is reaching out to UN member states and other parties to seek alternative sources of funding for its operations, including vital education and health care services UNRWA provides in the Middle East, he said.
The US decision comes after US President Donald Trump wrote a Twitter post on January 2 saying that Palestinians lack willingness to hold peace talks with Israel and have no respect for the United States despite the massive financial aid provided by Washington.