USAID OIG Investigates Claims U.S. Aid to Gaza Was Diverted to Hamas as U.N. Agencies Face Scrutiny

Overview

The U.S. Agency for International Development’s Office of the Inspector General (USAID OIG) is investigating allegations that American taxpayer-funded aid to Gaza has been diverted and, in some instances, may have been funneled to foreign terrorist organizations including Hamas. The probe, which USAID OIG flagged as an investigative priority in November 2023, continues amid conflicting accounts from aid workers, U.N. officials and U.S. government sources.

What the Investigation Covers

USAID OIG has said it is examining reports of interference, diversion, theft and possible smuggling of contraband into Gaza through humanitarian shipments. In a July 30 update, the OIG described its inquiries as targeting "credible allegations of Hamas interference, diversion, and theft of humanitarian aid in Gaza, as well as allegations of smuggling contraband into Gaza through humanitarian aid shipments."

Reports from the Ground and Whistleblowers

A U.S. diplomatic official briefed on the investigation told Fox News Digital that USAID OIG continues to receive reports from aid workers and other on-the-ground sources challenging the narrative that Hamas was not involved in theft of U.S.-funded aid. According to the official, whistleblowers have submitted evidence because they believe U.N. agencies have not adequately identified Hamas’ role in aid diversion.

"We received and continue to receive reports directly from aid workers and other parties on the ground that counters the sanitized narrative that Hamas was never involved in the theft of American funded aid," the official said.

U.N. Response and Reporting Disputes

The United Nations has acknowledged that much aid delivered to Gaza after May 2025 was taken by armed actors and desperate civilians, but the U.N. Office for the Coordination of Humanitarian Affairs has denied that Hamas was broadly responsible for the diversion. Reporting from Reuters in July described a USAID analysis that found limited evidence of Hamas theft — a finding disputed by the State Department and the White House.

Stéphane Dujarric, spokesperson for U.N. Secretary-General António Guterres, told reporters the U.N. has been sharing information with the U.S. government and is considering congressional requests for documents.

Focus on UNRWA

A central element of the scrutiny concerns the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). USAID OIG said an April 2025 inquiry found that three UNRWA staff members were linked to the Oct. 7 attacks and another 14 were identified as affiliates of Hamas. UNRWA has separately reported that it dismissed several employees for associations with those attacks.

The OIG has said it was unable to obtain names of dismissed personnel directly from UNRWA, prompting investigators to seek information through other channels to prevent individuals allegedly affiliated with Hamas from re-entering U.S.-funded programming in Gaza.

Congressional Oversight and Funding Concerns

Rep. James Comer (R-Ky.), chairman of the House Oversight and Government Reform Committee, has requested unredacted OIOS (U.N. Office of Internal Oversight Services) documents and correspondence related to staff under investigation. Comer emphasized the scale of U.S. funding to the U.N. — including significant contributions to the U.N.’s general, humanitarian and peacekeeping budgets — and asked for verification that U.S.-funded entities do not employ individuals affiliated with terrorist organizations.

USAID OIG has also noted that more than half of USAID programming is implemented through U.N. agencies and that some U.N. entities have been exempted from USAID’s partner-vetting process, a gap the OIG said "creates risk to USAID’s programs." Since October 2023, the OIG reported receiving multiple allegations of misconduct from USAID-funded implementers; only a minority of those allegations were submitted by U.N. organizations.

Statements and Positions

William Deere, director of UNRWA’s Washington office, said the U.N. provided USAID OIG with an unredacted OIOS report months earlier and defended UNRWA’s investigations and dismissals, while urging Israeli authorities to provide any substantiating evidence. A U.S. diplomatic official quoted in coverage disputed UNRWA’s assertion and said some individuals affiliated with Hamas remain employed by the agency.

A number of outside commentators and analysts have called for stronger measures or for restructuring of U.N. engagement in Gaza; others warn that dismantling established humanitarian channels could worsen civilian suffering without clear alternatives.

Current Status

USAID OIG has confirmed that its investigations into UNRWA officials and other allegations remain active and ongoing. The State Department and other U.S. agencies have declined to comment on internal investigative reports but have emphasized concerns about UNRWA’s role in Gaza and said the agency will not play a role in Gaza going forward.

What to Watch

• Further disclosures from USAID OIG or the U.N. Office of Internal Oversight Services (OIOS).
• Responses from UNRWA and the U.N. to congressional document requests.
• Any policy changes by the U.S. regarding funding channels to Gaza and partner vetting processes.

Note: This article compiles reporting and statements from U.S. officials, USAID OIG updates, U.N. spokespeople, congressional correspondence and media reports. It aims to summarize ongoing inquiries and positions without introducing unverified claims beyond those reported by primary sources.