The UNRWA investigation by the USAID Office of the Inspector General (OIG) has broadened scrutiny of humanitarian staffing in Gaza and raised fresh questions about U.S. aid policy. USAID OIG says roughly 1,500 current or former UNRWA employees are under review and that 108 individuals have been referred to the U.S. State Department for possible suspension or exclusion from U.S.-funded work (USAID OIG; reporting by Fox News Digital).
UNRWA investigation: Key findings
“USAID OIG’s investigation is helping prevent terrorists from criss-crossing across aid organizations that have received or are seeking U.S. or Board of Peace funding,” the agency said in briefings cited by reporting. (USAID OIG; Fox News Digital)
USAID OIG officials, as described in media reporting, say the probe covers at least 1,500 current or former UNRWA employees in Gaza and that 108 of those have been referred to the State Department for potential suspension or exclusion from organizations that receive U.S. funds (USAID OIG; Fox News Digital). The OIG characterized its work as part of broader efforts to ensure U.S.-funded assistance is not assisted or exploited by designated terrorist groups.
Those referrals are administrative actions recommended to the State Department, meant to support suspension or exclusion from future U.S. government-funded contracts or grants if the State Department concurs. USAID OIG officials also warned — as reported — that additional referrals and potential criminal referrals to the Department of Justice may follow as the investigation proceeds (USAID OIG; Fox News Digital).
Who was referred and the allegations
According to the OIG findings as reported, the 108 referred individuals held a range of positions: school principals, teachers, security personnel, psychosocial counselors, attendants and medical staff (USAID OIG; Fox News Digital). The report lists specific alleged roles and actions; these are presented here as allegations from the USAID OIG report and media reporting, not established facts.
Examples described by the OIG and cited in reporting include allegations that one teacher had “expertise as a sniper for Hamas,” that another tracked or assigned explosive devices, and that a school principal was linked to a unit accused of constructing anti-tank positions and a tunnel shaft under a school. The OIG report also reportedly identifies deputy school principals alleged to have held command roles in local militant units. Each specific role and action in this article is characterized as an allegation from the USAID OIG report (USAID OIG; Fox News Digital).
One named individual, Hafez Mousa Mohammed Mousa, has been banned by the State Department from future U.S. government work, according to reporting that cites U.S. officials and agency briefings. The OIG alleges Mousa coordinated communications with suspected Hamas members during Oct. 7 (USAID OIG; State Department action cited in Fox News Digital).
How this could affect U.S. funding and aid delivery
If the State Department pursues suspension or exclusion decisions for referred individuals, organizations employing those staff could face debarment, suspension or other restrictions under U.S. funding rules. USAID OIG framed its referrals specifically as supporting potential suspension and exclusion actions designed to prevent individuals with alleged terrorist ties from working on U.S.-funded programs (USAID OIG; Fox News Digital).
Policymakers and humanitarian planners warn that restricting UNRWA’s ability to operate or receive funds could create immediate operational gaps in food distribution, primary health care, vaccinations and shelter assistance in Gaza. U.S. and allied officials have said any transition away from UNRWA would require alternate delivery mechanisms to avoid interrupting aid flows (U.S. officials cited in reporting; Fox News Digital).
In Washington, the referrals have intensified debate over whether to condition, reduce or re-channel U.S. assistance. Legal tools available include suspension, exclusion, and debarment under federal procurement and grant rules, which can be applied to organizations that employ individuals suspended or excluded from U.S. programs (U.S. government funding rules; USAID OIG guidance summarized in reporting).
Other investigations and UN response
The USAID OIG probe follows a 2024 U.N. Office of Internal Oversight Services (OIOS) inquiry. OIOS reported it found insufficient evidence for the participation of 10 of 19 employees initially alleged to have been part of Oct. 7 attacks; UNRWA later terminated contracts of nine other employees, according to U.N. statements cited in reporting (U.N. OIOS; UNRWA statements summarized in media reporting).
U.N. humanitarian officials have also warned about obstruction and violence affecting aid delivery in Gaza, citing forced entry into distribution points and attacks on aid workers and truck drivers as part of a deteriorating security environment (U.N. humanitarian officials; media reporting).
By the numbers
- ~1,500: Current or former UNRWA employees under review by USAID OIG (reported).
- 108: Referred to the State Department for suspension or exclusion (USAID OIG; Fox News Digital).
- 19: Employees examined in the U.N. OIOS 2024 inquiry (OIOS reported insufficient evidence for 10; UNRWA later terminated nine contracts, per U.N. statements).
What comes next
USAID OIG told U.S. officials it expects to make more referrals to the State Department and that criminal referrals to the Department of Justice are possible, as reported. The State Department has indicated it may expand administrative bans on individuals it determines are linked to terrorism, and Congress and executive officials are considering policy and funding responses (USAID OIG; State Department; Fox News Digital).
Operationally, humanitarian agencies and donors will need to decide how to maintain critical services if UNRWA loses access to U.S. funding or faces major staff suspensions. That could involve new implementing partners, increased oversight conditions, or direct contracting by donors — all of which carry programmatic and logistical challenges.
FAQ
What is the UNRWA investigation by USAID OIG?
It is an OIG probe of suspected ties between current or former UNRWA staff in Gaza and foreign terrorist organizations, focusing on alleged participation in or support for the Oct. 7 attacks and other activity. The OIG has made administrative referrals to the State Department and signaled potential criminal referrals (USAID OIG; Fox News Digital).
How many UNRWA staff were referred to the State Department?
USAID OIG has said it referred 108 current or former UNRWA employees to the State Department for possible suspension or exclusion from U.S.-funded organizations; about 1,500 employees are under review (USAID OIG; Fox News Digital).
Could U.S. funding to UNRWA be cut because of these findings?
Yes. The referrals and political pressure increase the likelihood of funding restrictions, debarments or conditions on assistance. Officials emphasize any change must avoid creating gaps in humanitarian services (U.S. officials; USAID OIG; Fox News Digital).
Sources
- Fox News Digital reporting: “Trump administration probes UNRWA over alleged employment of 1,500 terrorists” — https://www.foxnews.com/world/trump-administration-probes-unrwa-over-alleged-employment-1500-terrorists (primary media source summarizing the USAID OIG briefings)
- USAID Office of Inspector General (OIG) briefings and materials as cited in media reporting (USAID OIG).
- U.N. Office of Internal Oversight Services (OIOS) and UNRWA statements on the 2024 inquiry, as summarized in U.N. statements and media reporting (U.N. OIOS; UNRWA).
- State Department administrative actions and bans referenced in reporting (State Department).
Note: Specific operational roles and actions described in the USAID OIG materials are presented here as allegations from the USAID OIG report and media reporting, not as established facts. All non-original claims are attributed to the agencies and reporting cited above.
