Senior Trump administration figures have pursued substantial deliberations on levying terrorism-related sanctions against the UN Palestinian refugee agency UNRWA, two individuals with direct knowledge disclosed, triggering pronounced legal and humanitarian alarm within State Department ranks, according to Reuters.
UNRWA functions across Gaza, the West Bank, Lebanon, Jordan, and Syria, delivering aid, schooling, medical services, social assistance, and housing to millions of Palestinians. The administration has accused the organization of Hamas ties, charges UNRWA has forcefully disputed.
Washington previously served as UNRWA's largest funder before halting contributions in January 2024 following Israeli claims that approximately a dozen UNRWA staff participated in the deadly October 7, 2023, Hamas assault that ignited the Gaza conflict. Secretary of State Marco Rubio subsequently charged in October that the agency had evolved into "a subsidiary of Hamas," which America designated a terrorist organization in 1997.
Current American deliberations have not clarified whether the focus encompasses the entire agency or targets specific UNRWA officials or operational segments, and authorities appear undecided on the precise sanctions instrument they would employ, according to Reuters.
Potential measures State Department figures have explored include designating UNRWA a "foreign terrorist organization (FTO)," the sources indicated, though whether that option – which would severely isolate UNRWA financially – remains actively under consideration is uncertain.
Imposing terrorism-based sanctions on UNRWA would constitute a remarkable and extraordinary step, given America's UN membership and role as host nation for the United Nations, which established the agency in 1949.
William Deere, who leads UNRWA's Washington office, stated the organization would be "disappointed" if American authorities were genuinely exploring an FTO designation. He termed such action "both unprecedented and unwarranted."
"Since January 2024, four independent entities have investigated UNRWA's neutrality including the US National Intelligence Council. While occurring at different times and from different perspectives, they have all come to the same conclusion: UNRWA is an indispensable, neutral, humanitarian actor," Deere stated.
A State Department official responding to inquiries called UNRWA a "corrupt organization with a proven track record of aiding and abetting terrorists," according to the report. "Everything is on the table," the official stated. "No final decisions have yet been made."
State and other agencies possess multiple sanctions mechanisms, generally enabling asset freezes and travel restrictions aimed at specific individuals and entities. Numerous vital American allies provide UNRWA funding, prompting questions whether foreign officials could face penalties for supporting an organization if Washington sanctions UNRWA or its personnel on terrorism grounds.
The UN has stated nine UNRWA employees may have participated in the October 7, 2023, Hamas attack and were fired, according to the report. A Hamas commander in Lebanon – killed by Israel in September – was also discovered to have held a UNRWA position.
Individuals directly familiar with the UNRWA deliberations, who requested anonymity to reveal confidential discussions, privately voiced multiple humanitarian and legal apprehensions given the organization's unique role assisting displaced Palestinians.
Political appointees at State installed since Trump's term began have generally championed the drive to impose terrorism sanctions on UNRWA, the sources stated, according to the report. Numerous career State officials – including lawyers who craft designation language – have resisted, those sources added, Reuters reported.
In recent weeks, potential sanctions have been discussed by officials in State's Counterterrorism Bureau and Policy Planning Staff members, an influential internal policymaking entity, one source stated.
Israeli Prime Minister Benjamin Netanyahu has spent years calling for UNRWA's dismantlement, accusing it of anti-Israeli incitemen. Since January 30, Israel has banned UNRWA operations on Israeli territory.
