A shadow hangs over the fragile ceasefire, a disturbing question mark over where American aid truly lands. While humanitarian assistance flows into Gaza, a quiet investigation is unfolding, led by the USAID Office of the Inspector General, probing allegations that U.S. taxpayer dollars are being diverted to Hamas – a designated terrorist organization.
The concerns aren’t whispers in the dark. A U.S. diplomatic official, intimately familiar with the investigation, revealed a steady stream of reports from aid workers on the ground, directly contradicting official narratives. These courageous individuals, “fed up with the U.N.’s failure to identify Hamas as the culprit,” are risking much to expose a potentially devastating truth: aid intended for civilians is being stolen.
The USAID OIG first raised the alarm in November 2023, prioritizing the prevention of aid falling into the hands of terrorist groups. By July 2024, the investigation had intensified, focusing on “credible allegations of Hamas interference, diversion, and theft” – even the smuggling of contraband disguised within humanitarian shipments.
The United Nations acknowledges that aid has been intercepted by armed groups and desperate civilians, but vehemently denies widespread Hamas involvement. This denial clashes sharply with the findings emerging from the USAID investigation and the accounts of those witnessing the situation firsthand.
A confidential USAID analysis initially suggested limited evidence of Hamas theft, but this assessment was swiftly disputed by both the State Department and the White House, who questioned its origins and motives. The situation is further clouded by accusations of internal manipulation, with one White House spokesperson suggesting the analysis was deliberately crafted to undermine a previous administration’s humanitarian efforts.
The scale of U.S. funding channeled through U.N. organizations is immense – over half of USAID’s programming relies on them. Yet, the OIG discovered a critical vulnerability: U.N. organizations are exempt from the standard vetting process applied to other partners, creating a significant risk to the integrity of U.S. aid programs.
The diplomatic source paints a picture of stark contrast, describing “robust, extensive, and productive” discussions at Joint Coordination Board meetings involving representatives from the IDF, U.S. Army, aid organizations, the U.N., and the ICRC. These meetings fostered a shared sense of purpose, only to be shattered by the U.N.’s subsequent public criticism of Israel’s aid delivery efforts.
Much of the investigation centers on the infiltration of UNRWA, the U.N. Relief and Works Agency for Palestine Refugees, by Hamas operatives. An April 2025 investigation concluded that at least three UNRWA members were directly involved in the October 7th attacks, with another fourteen identified as Hamas affiliates. While UNRWA terminated nine employees, questions remain about the extent of the problem.
The OIG faced obstruction in its pursuit of the truth, being “unable to obtain from UNRWA” the names of the fired personnel. Undeterred, investigators pursued independent avenues, gathering information UNRWA refused to provide, determined to prevent compromised individuals from being reassigned to other U.S.-funded organizations.
Congress is now actively investigating UNRWA’s role in the October 7th attacks, a tragedy that claimed the lives of over 1,200 Israelis and 32 Americans, and left 251 people hostage. A request for unredacted U.N. reports and related documentation has been sent to the U.N. Secretary-General, seeking accountability and transparency.
The U.S. provides substantial financial support to the U.N., including significant contributions to its general budget, humanitarian efforts, and peacekeeping operations, as well as direct funding to UNRWA. The demand for information is rooted in a fundamental principle: ensuring that American taxpayer funds do not support terrorist entities.
While the U.N. claims to be cooperating with the U.S. investigation, the diplomatic source remains skeptical, asserting that Hamas members continue to be employed by UNRWA. This claim is supported by a recent report revealing that a U.N. investigation dismissed evidence of Hamas ties as “insufficient” to justify further dismissals.
Experts warn that UNRWA has become synonymous with Hamas in Gaza, serving as a breeding ground for radicalization. The agency’s presence, they argue, perpetuates a cycle of conflict and undermines peace efforts. Dismantling the agency is seen as crucial to breaking this cycle.
The USAID OIG’s investigation remains active and ongoing, focused on preventing the re-emergence of Hamas-affiliated individuals within U.S.-funded organizations. The State Department, acknowledging UNRWA’s complicity in the October 7th attacks, has declared the agency “unfit for purpose” in Gaza.
