Trump administration officials are holding advanced discussions on imposing terrorism-related sanctions against the United Nations Relief and Works Agency (UNRWA), Reuters reported on Wednesday, citing two sources with direct knowledge of the matter.
The deliberations have sparked serious legal and humanitarian concerns inside the State Department, according to the report.
UNRWA operates in Gaza, Judea and Samaria, Lebanon, Jordan, and Syria, providing schooling, healthcare, social services, and shelter to millions of Palestinian Arabs. Top UN officials and the Security Council have described the agency as the backbone of humanitarian aid in Gaza.
However, UNRWA has long been criticized for its cooperation with the Hamas terrorist organization, which has been proven time and time again. That criticism has increased since Israel provided evidence in 2024 that UNRWA staff participated in the October 7, 2023 Hamas attacks.
Washington, once UNRWA’s largest donor, halted funding in January 2024 due to its staff’s participation in the October 7 massacre. US Secretary of State Marco Rubio later charged the agency with becoming “a subsidiary of Hamas,” which the US designated a terrorist organization in 1997.
It remains unclear whether current discussions target the entire agency or specific officials, according to Reuters. Options under review include declaring UNRWA a “foreign terrorist organization” (FTO), a move that would severely isolate the agency financially. Such a designation would be unprecedented, given that the United States is both a UN member and host country.
William Deere, director of UNRWA’s Washington office, said the agency would be “disappointed” if an FTO designation were under consideration, calling it “both unprecedented and unwarranted.”
A State Department official, however, described UNRWA as “a corrupt organization with a proven track record of aiding and abetting terrorists,” adding, “Everything is on the table. No final decisions have yet been made.” The White House declined comment.
Despite all the evidence showing UNRWA’s deep ties to Hamas, the International Court of Justice (ICJ) recently ruled that Israel must facilitate the entry of humanitarian aid into the Gaza Strip through UN agencies, including UNRWA. That ruling was criticized by Israel as well as by the US.