TEL AVIV [Israel], The Knesset Plenum on Wednesday approved a preliminary reading of legislation designating the United Nations Relief and Works Agency as a "terrorist organization." The bill, which must clear further legislative hurdles, would pave the way for Israel to sever ties with the UN agency. Specifically, the law authorizes the State Department to make the final decision on terrorist designation. After this the agency will be stripped of its diplomatic immunity, tax-exempt status and other legal benefits. The initial reading of the bill passed by a vote of 42–6. MK Avigdor Liberman, who heads the right-wing opposition Israel Beiteinu party, after the vote., said on UNRWA has faced criticism for several months, with Israeli officials demanding that the agency's staff members participate in the October 7 attacks. Israel's largest bank froze UNRWA's account in February amid revelations that the agency could not adequately explain its authority. Failed.Israeli forces discovered a Hamas compound located just below UNRWA's Gaza City headquarters. Computer servers belonging to Hamas were directly connected to UNRWA's power system. Jerusalem deputies have several times found weapons stored in UNRWA facilities. The mayor accused UNRWA, among other things, of undermining Israeli sovereignty over the city. The report released by Impact-SE and UN Watch documented UNRWA staff expressing support for the 7 October attacks on social media.The UN investigated Israeli allegations against 19 UNRWA employees. But to Israel's anger, the investigation was closed as UN officials claimed the evidence presented was insufficient. As a result, Israel is bypassing UNRWA and distributing humanitarian aid in the Gaza Strip. Palestinian refugees are the only refugee population with their own dedicated UK agency. The rest of the world's refugees fall under the mandate of the United Nations High Commissioner for Refugees.Israeli officials have called for UNRWA to be closed down and Palestinian refugees to be brought under the responsibility of UNHCR, after Hamas attacks on Israeli communities near the Gaza border on 7 October killed at least 1,200 people and wounded 252 Israelis and foreigners. Was taken hostage. Of the remaining 125 hostages, 39 are believed dead.