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USAID Investigates Allegations of Hamas Diversion of Humanitarian Aid in Gaza
As the ceasefire between Israel and Hamas unfolds, the USAID Office of the Inspector General (USAID OIG) is actively investigating claims that U.S. taxpayer dollars are being directed towards foreign terrorist organizations. This investigation comes amid mounting evidence suggesting that aid intended for Gazans is being misappropriated by Hamas.
A U.S. diplomatic official, familiar with the investigations conducted by USAID OIG, informed Fox News Digital that the office is receiving ongoing reports from aid workers stationed in the region. These reports challenge the prevailing narrative that Hamas is not involved in the misallocation of American-funded assistance. The official noted that many whistleblowers are coming forward, expressing frustration over the U.N.’s failure to hold Hamas accountable for its actions.
In November 2023, USAID OIG issued its initial alerts regarding the potential misdirection of American aid to Gaza, marking it as a top investigative priority. The organization emphasized its commitment to ensuring that humanitarian assistance does not end up in the hands of foreign terrorist organizations, with Hamas specifically cited as a concern.
In a July update, USAID OIG revealed it is investigating credible claims of Hamas interference in the distribution of humanitarian aid in Gaza. The agency is also looking into allegations related to the smuggling of contraband through aid shipments.
The United Nations has acknowledged that a significant portion of its aid sent to Gaza following hostilities in May 2025 was diverted by armed groups, including desperate local residents. Despite this acknowledgment, the U.N. Office for the Coordination of Humanitarian Affairs has maintained that Hamas is not responsible for the widespread diversion of aid.
In July, Reuters reported on a USAID analysis that found minimal evidence of Hamas stealing Gaza aid, a conclusion that the White House and State Department have openly disputed. Anna Kelly, a White House spokesperson, suggested that the analysis might have been produced by a source with ulterior motives, aimed at undermining President Donald Trump’s humanitarian goals.
Over half of USAID’s funding is allocated to U.N. organizations. However, a report released by USAID OIG in July 2024 highlighted that since October 2023, it has documented 17 allegations of misconduct involving five USAID-funded implementers, where only two claims originated from U.N. bodies.
The OIG also pointed out that U.N. organizations are exempt from USAID’s partner vetting process, which raises potential risks to USAID’s programs.
Concerns about U.N. practices in Gaza have caught the attention of lawmakers. Rep. James Comer, who chairs the House Oversight and Government Reform Committee, has initiated an investigation into allegations regarding UNRWA staff involvement in the October 7 attacks, which resulted in significant casualties, including over 1,200 Israelis and 32 Americans, alongside a number of hostages.
In an open letter addressed to U.N. Secretary-General António Guterres on October 27, Comer has requested unfiltered access to a U.N. Office of Internal Oversight Services (OIOS) report regarding UNRWA’s involvement in the October 7 attacks. He also demanded communications related to the investigation of staff members’ possible participation in the violent acts.
Comer highlighted that the U.S. contributes a substantial portion of the U.N.’s budget, making it critical to ensure that no American taxpayer funds are allocated to organizations employing individuals connected to terrorism. He stated, “The requested documents are essential for verifying that no U.N. entity or NGO benefiting from U.S. funds is harboring individuals associated with terrorist organizations.”
In response to these ongoing inquiries, Stéphane Dujarric, the spokesperson for Guterres, confirmed that the U.N. has been in communication with the U.S. government to address the issues raised in Comer’s letter. He stated that the U.N. is currently evaluating the request from the committee and intends to respond with relevant information shortly.
William Deere, director of the UNRWA Representative Office in Washington, addressed these issues, asserting that UNRWA had provided the USAID IG with an unredacted version of the OIOS investigation months previously. He rejected claims that the U.N. was withholding information, arguing that UNRWA had acted swiftly to terminate the employment of any staff members named in allegations of misconduct.
Deere emphasized that incidents of alleged misconduct by UNRWA personnel would continue to be investigated thoroughly. He pointedly remarked that Israel’s government had failed to substantiate its allegations against UNRWA employees or take appropriate action in its own judicial system.
Furthermore, a current U.S. diplomatic official provided insight into the investigation conducted by the USAID OIG. They remarked that the OIG’s upcoming report is seeking to ensure that UNRWA officials affiliated with Hamas do not find positions within other U.S.-funded agencies operating in Gaza.
A confidential report recently revealed that the OIOS deemed evidence provided by Israeli intelligence concerning UNRWA employees’ collaboration with Hamas as likely valid but insufficient to justify termination. The U.N. reportedly did not investigate alleged connections to Hamas beyond the context of the October 7 attacks.
Goldberg, a senior advisor at the Foundation for Defense of Democracies, stated that UNRWA serves as an extension of Hamas in Gaza and represents a broader radicalization threat. He asserted that alternatives to UNRWA could be implemented without significantly impacting assistance in the region.
USAID OIG reaffirmed that its investigations into UNRWA officials with ties to Hamas are still active, aiming to prevent the infiltration of terrorist elements into organizations funded by U.S. taxpayer dollars.
Addressing inquiries about the State Department’s engagement with the USAID OIG findings, a spokesperson responded that the department generally refrains from commenting on internal or investigative reports. Nevertheless, they confirmed that UNRWA’s involvement in the October 7 attacks renders it unfit for continued operation in Gaza.
What Lies Ahead for U.S. Funding and the U.N.
As investigations unfold, the implications for future U.S. funding and support to U.N. agencies remain uncertain. Policymakers will need to carefully weigh the risks associated with aid distribution in Gaza while ensuring that humanitarian efforts reach those in need without empowering terrorist organizations.
