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US Investigation into UNRWA Expands to 1,500 Employees Amid Hamas Ties Scrutiny, Fueling Terror Designation Push

Federal probe uncovers deep Hamas infiltration at Gaza-focused aid agency, prompting congressional and administration efforts to strip immunity and impose sanctions.

By State Beacon Staff·
US Investigation into UNRWA Expands to 1,500 Employees Amid Hamas Ties Scrutiny, Fueling Terror Designation Push

Investigation Uncovers Hamas Infiltration

A widening U.S. federal investigation is now examining at least 1,500 current and former employees of the United Nations Relief and Works Agency (UNRWA) for suspected ties to Hamas, as momentum builds in Washington to potentially designate the Gaza-focused aid group as a foreign terrorist organization. The U.S. Agency for International Development (USAID) Office of Inspector General (oig.usaid.gov) has spent months unearthing evidence linking UNRWA staff to Hamas activities, including participation in the October 7 terror attack.

The probe, which has identified at least one UNRWA school principal involved with Hamas's East Jabaliya Battalion, aims to prevent terror-linked individuals from moving to other U.N. agencies. State Department officials are compiling a blacklist of implicated employees, with one senior official stating that UNRWA's actions align with criteria for foreign terrorist organization (FTO) designation. "If UNRWA was not a U.N. organization, it'd be undeniably facing terrorist sanctions," the official said.

Congressional Pressure Mounts for Sanctions

Lawmakers are pushing the Trump administration to revoke UNRWA's diplomatic immunity, which would expose it to lawsuits from terror victims and potentially trigger FTO designation. Such a move could cripple the agency, as legal challenges over its role in the October 7 attacks might overwhelm its resources. "There has to be consequences for UNRWA's conduct," said one U.S. official, citing its refusal to cooperate with investigators.

Sen. Tom Cotton (R., Ark.) and 24 colleagues urged the administration in a May 19 letter to "fully dismantle UNRWA and eliminate it from the UN budget." Similar calls have emerged from Rep. Mike Lawler (R., N.Y.) and 90 House members. Sens. and Bill Hagerty (R., Tenn.) warned that continued stonewalling by UNRWA and other U.N. agencies will escalate tensions. "Either they come clean, or I expect growing momentum for designating them," Cruz said.

Designating UNRWA as an FTO would bar U.S. aid and freeze its assets, though the agency still receives indirect funding through the U.N. budget. Richard Goldberg, a former Trump administration official, noted existing authorities allow terrorism sanctions without U.N. approval. "Nothing stops the Treasury Department from imposing sanctions to force its closure," he said.

The USAID inspector general sent requests to six U.N. agencies in December 2025 for employee data and Hamas interaction details, but all refused to comply. This lack of transparency has fueled bipartisan frustration, with lawmakers arguing that U.N. agencies must face repercussions for obstructing U.S. investigations.