Amid the ongoing humanitarian crisis in Gaza, the U.S. government is reportedly exploring the possibility of imposing terrorism-related sanctions on the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
The discussions, according to sources familiar with the matter, are advanced, though no final decisions have been made.
UNRWA operates in Gaza, the West Bank, Lebanon, Jordan, and Syria, offering essential aid such as schooling, healthcare, social services, and shelter to millions of Palestinians.
While it has been a critical lifeline for those affected by conflict, some U.S. officials and Israeli authorities argue that the agency has ties to Hamas, particularly in the deadly October 7, 2023, attack on Israel.
UNRWA’s Role in Gaza’s Humanitarian Response
Top UN officials and the UN Security Council have repeatedly described UNRWA as the backbone of aid in Gaza, especially during the two-year-long conflict between Israel and Hamas, which has caused immense human suffering.
The agency’s programs are vital for survival, providing food, medical care, and shelter amid ongoing violence.
Despite these claims, the Trump administration has largely aligned with Israel.
Funding to UNRWA was halted in January 2024 after Israel accused about a dozen UNRWA employees of participating in the October attack.
An executive order signed in February cited UNRWA as having been infiltrated by members of groups previously designated as terrorist organizations, further complicating the agency’s position.
Controversy Over U.S. Sanctions
Discussions within the State Department reportedly include the possibility of labeling UNRWA itself as a “foreign terrorist organization” (FTO), a designation typically reserved for groups like al-Qaeda or ISIS that directly attack civilians.
Such a move would be unprecedented, given that the United States is both a member and the host country of the United Nations.
William Deere, director of UNRWA’s Washington office, emphasized that the agency would be “disappointed” if such a designation were pursued, calling it “both unprecedented and unwarranted.”
He highlighted that multiple independent investigations, including by the U.S. National Intelligence Council, concluded that UNRWA remains a neutral and indispensable humanitarian actor.
Investigations Into Alleged Misconduct
UNRWA has faced scrutiny over employee involvement in the October attack.
An Internal Oversight Services investigation in August 2024 looked into 19 staff members.
While nine were found to “may have been involved” and were subsequently dismissed, other cases lacked sufficient evidence.
Additionally, a Hamas commander killed by Israel in September had previously worked for UNRWA in Lebanon.
The UN has consistently requested proof from Israel for these allegations, but claims have yet to be substantiated publicly.
Experts warn that broad sanctions against the agency could disrupt aid operations and worsen the humanitarian situation for refugees.
Diplomatic and Legal Challenges
The U.S. must also consider the international implications, as many allies fund UNRWA.
Sanctioning the agency could raise questions about whether foreign officials or entities would face penalties for providing support.
Alternative sanctions, like asset freezes or travel bans targeting specific individuals, are being weighed as potentially less disruptive approaches.
A State Department official described UNRWA as “a corrupt organization with a proven track record of aiding and abetting terrorists,” while cautioning that no final decisions had been made.
Political appointees within the department appear to be driving the push for sanctions, though career officials have expressed concerns about humanitarian and legal repercussions.
Israel’s Stance and Regional Tensions
Israeli Prime Minister Benjamin Netanyahu has long criticized UNRWA, calling for its dismantling over alleged anti-Israeli incitement.
Israel has banned UNRWA operations on its territory, including East Jerusalem, and limited contact with Israeli authorities.
Although a U.S.-brokered peace deal between Israel and Hamas was signed in October, ceasefire violations continue, and the broader terms of the agreement have seen limited progress.
Tragically, more than 370 UNRWA workers have been killed in Gaza during the conflict, underscoring the risks faced by humanitarian staff on the ground.
What Lies Ahead
It remains uncertain whether the Trump administration will formally designate UNRWA as a terrorist organization or pursue targeted sanctions against specific individuals.
The debate highlights the tension between addressing security concerns and maintaining vital humanitarian aid for millions of Palestinian refugees.
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