As the ceasefire between Israel and Hamas remains in effect, the USAID Office of Inspector General (USAID OIG) is currently investigating claims that U.S. taxpayer funds are being misappropriated by foreign terrorist organizations.
A U.S. diplomatic official, who is briefed on the ongoing investigation, indicated to Fox News Digital that the OIG has been receiving and continues to receive reports from aid workers in the field. These reports challenge the narrative that Hamas has not been involved in the misappropriation of U.S.-provided aid. The official noted that whistleblowers and aid workers are expressing frustration over the UN’s reluctance to acknowledge Hamas’s role in these actions.
USAID OIG issued an initial warning in November 2023 regarding the possible diversion of U.S. assistance to Gaza, labeling the investigation as a priority to ensure that aid does not end up in the hands of foreign terrorist organizations, specifically mentioning Hamas.
In a July update, the OIG confirmed it is looking into credible allegations concerning Hamas’s interference, diversion, and theft of humanitarian supplies in Gaza. There are also reports about the smuggling of contraband into Gaza through humanitarian shipments.
The United Nations has acknowledged that a significant portion of the aid sent to Gaza since May 2025 has been diverted due to armed groups and local residents in dire need. However, the UN’s Office for the Coordination of Humanitarian Affairs claimed that Hamas is not responsible for this widespread diversion.
In July, Reuters reported on a USAID analysis that found minimal evidence of Hamas stealing aid, though this was contested by both the State Department and the White House. White House press secretary Anna Kelly suggested the analysis may have been influenced by factions attempting to undermine President Donald Trump’s humanitarian strategies.
Most of USAID’s programs are allocated to United Nations agencies. Yet, in July 2024, USAID OIG pointed out that it had received 17 reports of suspected misconduct from five USAID-funded organizations since October 2023, with only two of these from UN agencies.
The OIG highlighted that UN agencies are exempt from USAID’s partner review process, raising concerns regarding potential risks to USAID’s efforts.
A diplomatic source reported direct observations of the UN’s inconsistent messaging regarding food shipments to Gaza. The source noted productive discussions involving various agencies about aid, only to see the UN release a press statement criticizing the Israeli government for its coordination on aid delivery the following day.
Since the onset of the conflict with Hamas’s attacks on October 7, much of USAID OIG’s efforts have focused on the infiltration of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) by Hamas. An investigation concluded in April 2025 revealed that three UNRWA staff members were involved in the October 7 attack, with another 14 having ties to Hamas. Reports indicate that UNRWA had previously terminated nine employees for their connection to the incident, though details on these individuals were not disclosed.
Authority sources claimed that investigators from USAID OIG acquired information from UNRWA that the agency was unwilling to disclose through other means. This led to an independent investigation aimed at preventing Hamas-associated personnel from moving to other U.S. taxpayer-funded organizations in Gaza.
Representative James Comer (R-Ky.), chairman of the House Oversight and Government Reform Committee, has initiated a probe into UNRWA employees involved in the October 7 attacks, which resulted in significant casualties, including over 1,200 Israelis and 32 Americans, along with 251 hostages taken.
In an open letter addressed to UN Secretary-General António Guterres dated October 27, Mr. Kamel requested an unredacted version of the internal report concerning UNRWA’s involvement in the attack, along with related correspondence about personnel investigated for potential roles in the incident.
Comer emphasized that the U.S. is providing substantial funding to UNRWA and the UN as a whole, and urged the necessity of the requested documents to ensure that organizations receiving U.S. taxpayer money do not employ individuals linked to terrorist groups.
Guterres’ spokesman, Stéphane Dujarric, stated that the UN is engaged in sharing details with the U.S. government regarding the issues raised in the letter and is considering the request. He noted he would refrain from commenting further publicly.
William Deere, director of UNRWA’s representative office in Washington, DC, told Fox News Digital that the organization provided the Inspector General with an unredacted report regarding the internal investigation. He contended that the assertion of withholding information from the U.S. is “completely disingenuous.” He highlighted that swift action had been taken regarding allegations of misconduct against staff members.
He also pointed out that the Israeli government has not shared any evidence to support its allegations against UNRWA personnel, suggesting a lack of follow-up action against the individuals named.
A U.S. diplomatic source familiar with the UNRWA investigation expressed skepticism towards the UN’s claim that no Hamas members are still employed by the agency, stating that it’s undeniable that some connections persist.
Recent reports indicate that a confidential document from the United Nations Office of Internal Oversight (OIOS) presents evidence, allegedly derived from Israeli intelligence, revealing interception of communications between Hamas and UNRWA officials. While categorized as “likely genuine,” OIOS deemed it insufficient for dismissing additional UNRWA officials.
Richard Goldberg, a senior adviser with the Foundation for Defense of Democracies, underscored the serious implications of UNRWA’s existence, asserting that as long as it operates, conflicts like those of October 7 will likely recur.
Currently, USAID OIG has confirmed that its investigation into UNRWA personnel with connections to Hamas is active and aims to prevent any further infiltration of terrorist affiliates into U.S. funded organizations in Gaza.
When questioned about the State Department’s use of the USAID OIG report concerning UNRWA’s involvement in the October 7 attack, a spokesperson said that typically, the State Department doesn’t comment on internal investigative reports. They reiterated that UNRWA’s actions on that day were problematic, emphasizing a policy of distancing from any further involvement in Gaza.
