The Trump administration is considering designating the UN’s Palestinian relief agency, UNRWA, as a terrorist organization, a move that would expose it to U.S. sanctions amid mounting allegations of deep ties to Hamas.
Washington was long the largest donor to UNRWA but halted funding in January 2024 after Israel accused several UNRWA staff of involvement in the deadly October 7th, 2023 Hamas terrorist attack that triggered the conflict in Gaza.
U.S. secretary of state Marco Rubio called the agency “a subsidiary of Hamas,” which the United States listed as a terrorist group in 1997. Israel has also barred UNRWA from operating on its territory, citing evidence that some employees were involved in the October 7th pogrom.
Since the agency is no longer receiving funding from the U.S., it has called on international donors for urgent funding, warning that without urgent international support, it may struggle to operate beyond November 2025 and could be unable to pay salaries for staff.
Current discussions in Washington reportedly include declaring the whole UNRWA agency a foreign terrorist organization (FTO) or targeting specific officials, though no final decisions have been made. A U.S. State Department official told reporters that “everything is on the table,” describing UNRWA as “a corrupt organization with a proven track record of aiding and abetting terrorists.”
Earlier reports indicate that the agency has long served as a platform for Hamas to radicalize Palestinian youth. Hillel Neuer, Executive Director of UN Watch, said that years of inadequate oversight have allowed Hamas to influence and radicalize an entire generation through UNRWA schools in Gaza. Neuer also criticized the agency for fostering political dependency and preventing genuine self-governance among Palestinians.
Neuer pointed to his group’s reports on UNRWA hiring “Hamas terror chiefs” to run Gaza’s education system, and the celebration of the October 7th terror attacks by UNRWA teachers in Gaza.
Despite these concerns, UNRWA continues to receive support from Brussels. The European Commission, for instance, provided €52 million in taxpayer funding in June 2025.
