As the ceasefire between Israel and Hamas continues, the USAID Office of Inspector General (USAID OIG) continues its investigation into allegations that American taxpayer dollars are being diverted to foreign terrorist organizations.
USAID OIG issued its first warnings about the potential diversion of US aid to Gaza in November 2023, noting that it was an “investigative priority to ensure that aid does not fall into the hands of foreign terrorist organizations (FTOs), including, but not limited to, Hamas.”
In a July 30 update, USAID OIG reported that it was “investigating credible allegations of Hamas interference, diversion and theft of humanitarian aid in Gaza, as well as allegations of smuggling of contraband into Gaza through humanitarian aid shipments.”
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Hamas has signed onto President Donald Trump’s plan as IDF forces begin to withdraw from the enclave. (Majdi Fathi/NurPhoto via Getty Images)
The United Nations has admitted that most of the aid it sent to Gaza after May 2025 was diverted by armed actors and hungry Gazans. Still, the United Nations Office for the Coordination of Humanitarian Affairs said Hamas was not responsible for the widespread diversion of aid.
In July, Reuters reported this that a USAID analysis found little evidence of Hamas theft of aid to Gaza, something the State Department and White House disputed. Anna Kelly, a White House spokesperson, told Reuters it was “likely produced by a deep state operative” seeking to discredit President Donald Trump’s “humanitarian agenda.”
An American flag and USAID flag fly outside the USAID building in Washington, DC, USA, February 1, 2025. (REUTERS/Annabelle Gordon)
More than half of USAID programming is mandatory for UN organizations. However, the USAID OIG reported in July 2024 that it had received “17 reports of alleged misconduct from five USAID-funded implementers” as of October 2023, only two of which were filed by UN agencies.
The OIG also noted that UN agencies were exempt from USAID’s partner investigation, which “poses risks to USAID’s programs.”
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Hamas terrorists with clubs and firearms secure and direct humanitarian aid trucks in the northern Gaza area of Jabaliya in June. 25 (TPS-IL)
The diplomatic source also reported firsthand that the UN was duplicitous over food deliveries to Gaza. The source attended Joint Coordination Council meetings where officials from the Israeli military, the US military, US aid agencies, the UN and the International Committee of the Red Cross held “robust, comprehensive and productive” discussions about aid deliveries and appeared to share “a sense of mission.”
“It was shocking then to read press reports from those same UN agencies, fully criticizing Israel’s government the next day for its failure to coordinate relief efforts,” the official said.
Much of USAID OIG’s efforts since the outbreak of war following the October 7 Hamas attacks have focused on Hamas’s infiltration of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
The agency completed an investigation in April 2025 that found three UNRWA members were involved in the October 7 attack and another 14 members were from Hamas.
According to reports, UNRWA previously dismissed nine employees for their involvement in the attacks.
In July, USAID OIG reported that it was “unable to obtain from UNRWA the names of the personnel it had dismissed.
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A U.S. Air Force Boeing C-17 Globemaster III prepares to unload its cargo as foreign aid destined for the Gaza Strip is delivered to El Arish International Airport on December 5, 2023 in Arish, Egypt. (Ali Moustafa/Getty Images)
The diplomatic source said USAID OIG investigators “opened an independent investigation and obtained information that UNRWA declined to provide through other sources and methods,” with the aim of ensuring “that UNRWA officials associated with Hamas do not recirculate to other U.S. taxpayer-funded organizations operating in Gaza,” the official said.
House Oversight and Government Reform Committee Chairman Rep. James Comer, R-Ky., has launched an investigation into the participation of UNRWA personnel in the Oct. 7 attacks, which led to the deaths of more than 1,200 Israelis and 32 Americans and the hostage-taking of 251 people.
In an open letter to UN Secretary General António Guterres dated October 27, Comer requested unredacted copies of a report by the UN Office for Internal Oversight Services (OIOS) on UNRWA’s participation in the deadly attack and requested correspondence and other details about the personnel under investigation for their possible role.
Comer noted that the US provides 22% of the UN general budget, 40% of the humanitarian budget and 25% of the peacekeeping budget, in addition to providing US$343 million in 2022 and US$422 million in 2023 to UNRWA. “The requested documents and communications are necessary to verify that no UN entity or NGO that receives US taxpayer funds employs individuals associated with or supporting terrorist entities,” Comer said.
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Deere claimed that “the government of Israel has since unfortunately failed to provide the United States, the United Nations, or UNRWA with the information and evidence that would substantiate its claims against UNRWA employees.” for the information in these cases.”
Mohammad Abu Itiwi during the October 7 massacre. The Hamas Nukhba commander was involved in the murder and kidnapping of Israeli civilians on October 7 and, according to the IDF, was simultaneously employed by UNRWA. (IDF Spokespersons Unit)
The US diplomatic official familiar with UNRWA’s investigation disputes the UN’s claim that Hamas members do not remain on UNRWA’s payroll, saying that “maybe ‘some’ of the October 7 terrorists have been removed, but UNRWA continues to employ Hamas members, there is no doubt about that. They are a subsidiary of Hamas.”
Monday a report from the The free beacon of Washington said a confidential copy of the UN Office for Internal Oversight Services (OIOS) report on the participation of UNRWA members in the October 7 attack would show that OIOS dismissed evidence provided by Israeli intelligence about intercepted calls between Hamas personnel and UNRWA personnel as “probably authentic” but “insufficient” evidence of cooperation to support the dismissal of 10 additional UNRWA employees. In addition, the report said the UN “has not investigated links with Hamas beyond its participation in the October 7 attacks.”
“We also need to dismantle the entire agency in the context of deradicalization,” Goldberg said. “October 7 will happen again and again as long as UNRWA exists. The Trump plan will fail where UNRWA is present. Arab countries make peace with Israel. UNRWA is still fighting the 1948 war.”
Military vehicles are gathered near the Israel-Gaza border, amid a ceasefire between Israel and Hamas, in southern Israel on October 12, 2025. (Ammar Awad/Reuters)
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USAID OIG confirmed that its “investigations of UNRWA officials linked to Hamas are active and ongoing, and are intended to prevent the recirculation of terrorists to other US-funded organizations operating in Gaza.”
