Investigation Continues into Allegations of US Aid Diverted to Hamas in Gaza

As the ceasefire between Israel and Hamas holds, the USAID Office of the Inspector General (USAID OIG) is intensifying its investigation into allegations that American taxpayer dollars meant for humanitarian assistance have been diverted to foreign terrorist organizations in Gaza.

A U.S. diplomatic official briefed on the ongoing investigations told reporters that the OIG continues to receive direct reports from aid workers and parties on the ground that contradict claims that Hamas was never involved in the theft of American-funded aid. Whistleblowers and frustrated aid workers are reportedly submitting evidence that challenges the United Nations’ reluctance to identify Hamas as responsible for aid diversion.

“We’re seeing reports still being sent in by whistleblowers and aid workers who are fed up with the U.N.’s failure to identify Hamas as the culprit,” the official stated.

The investigation began in November 2023 when USAID OIG issued its first warnings about possible diversion of American aid to Gaza, noting it was an “investigative priority” to ensure assistance did not fall into the hands of foreign terrorist organizations, particularly Hamas. By July 2025, the OIG reported it was investigating “credible allegations of Hamas interference, diversion, and theft of humanitarian aid in Gaza,” including allegations of smuggling contraband through aid shipments.

Conflicting Reports on Hamas Involvement

The United Nations has admitted that most aid sent into Gaza after May 2025 was diverted by “armed actors and hungry Gazans.” However, the United Nations Office for the Coordination of Humanitarian Affairs has maintained that Hamas was not responsible for widespread aid diversion.

This position has created tension with U.S. authorities. When Reuters reported in July that a USAID analysis found little evidence of Hamas theft of Gaza aid, both the State Department and White House disputed the claim. White House spokesperson Anna Kelly suggested the analysis “was likely produced by a deep state operative” attempting to discredit President Donald Trump’s humanitarian agenda.

The diplomatic source also described witnessing what they characterized as U.N. duplicity regarding food deliveries to Gaza. The source attended Joint Coordination Board meetings where officials from various organizations, including the Israel Defense Forces, U.S. Army, U.S. aid organizations, the U.N., and the International Committee of the Red Cross, had what appeared to be productive discussions about aid deliveries.

“It was shocking then to read press releases by those same U.N. agencies the very next day totally body-slamming the government of Israel for failing to coordinate delivery of aid,” the official remarked.

UNRWA Under Scrutiny

A significant portion of the USAID OIG’s investigation has focused on Hamas’ alleged infiltration of the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). In April 2025, the office concluded an investigation finding that three UNRWA members were connected with the October 7 attack, and another 14 were affiliates of Hamas.

UNRWA had previously fired nine employees for their alleged association with the attacks. However, in July, USAID OIG reported being “unable to obtain from UNRWA” the names of the personnel it fired.

The diplomatic source indicated that USAID OIG investigators “opened an independent investigation, obtaining information that UNRWA refused to provide through other sources and methods,” aiming to ensure “that UNRWA officials associated with Hamas do not recirculate to other U.S. taxpayer-funded organizations operating in Gaza.”

Congressional Oversight and UN Response

House Oversight and Government Reform Committee Chairman Rep. James Comer (R-Ky.) has initiated an investigation into UNRWA staff participation in the October 7, 2023, attacks, which resulted in over 1,200 Israeli and 32 American deaths, with 251 people taken hostage.

In a letter to U.N. Secretary-General António Guterres dated October 27, Comer requested unredacted copies of a U.N. Office of Internal Oversight Services (OIOS) report into UNRWA participation in the attack, along with correspondence about staff investigated for possible roles.

Comer emphasized that the United States provides significant financial support to U.N. operations, including 22% of the general budget, 40% of the humanitarian budget, and 25% of the peacekeeping budget. In addition, the U.S. provided $343 million in 2022 and $422 million in 2023 specifically to UNRWA.

Stéphane Dujarric, spokesperson for Guterres, confirmed that the U.N. has been “sharing information with the United States government” and is considering the committee’s request.

Allegations of Continuing Hamas Presence

William Deere, director of the UNRWA Representative Office in Washington, D.C., defended the organization, stating that “the United Nations provided the USAID IG with an unredacted copy of the U.N. Office of Internal Oversight Services (OIOS) investigation report months ago.” He claimed that Israel has failed to provide evidence that would substantiate its claims against UNRWA employees or take action against the named individuals in its own judicial system.

However, the U.S. diplomatic official familiar with the investigation disputed UNRWA’s assertion that members of Hamas have been removed from the payroll, stating, “Perhaps ‘some’ of the Oct. 7 terrorists were removed, but UNRWA continues to employ Hamas members, there is no question. They are a subsidiary of Hamas.”

A State Department spokesperson responded that “UNRWA was complicit in Oct. 7 and is unfit for purpose. Our policy is that it will not play a role in Gaza again.”

As investigations continue, USAID OIG confirmed that its “investigations of UNRWA officials affiliated with Hamas are active and ongoing, and intended to prevent the recirculation of terrorists to other U.S.-funded organizations operating in Gaza.”