Media: US weighs terrorism sanctions on UN Palestinian Refugee Agency

Trump administration officials have engaged in advanced discussions about imposing terrorism-related sanctions on the United Nations Relief and Works Agency (UNRWA), two sources with direct knowledge confirmed.

The deliberations have raised serious legal and humanitarian concerns within the State Department, Reuters reports.

UNRWA operates across Gaza, the West Bank, Lebanon, Jordan, and Syria, providing aid, education, healthcare, social services, and shelter to millions of Palestinians. The agency has been described by top UN officials and the UN Security Council as “the backbone of the aid response in Gaza,” where the ongoing war between Israel and Hamas has caused a humanitarian catastrophe.

The Trump administration has accused UNRWA of links to Hamas, allegations the agency has vigorously denied. The US, historically UNRWA’s largest donor, halted funding in January 2024 after Israel alleged that about a dozen UNRWA staff participated in the October 7, 2023, Hamas attack that triggered the conflict. Secretary of State Marco Rubio later accused UNRWA of functioning as “a subsidiary of Hamas.”

It is unclear whether current US discussions would target the entire agency or only certain officials or operations. Among the possibilities considered is designating UNRWA as a Foreign Terrorist Organization (FTO), a move that could severely isolate it financially. William Deere, director of UNRWA’s Washington office, said such a designation would be “both unprecedented and unwarranted,” emphasizing that “four independent entities have investigated UNRWA’s neutrality, including the US National Intelligence Council,” all concluding it remains “an indispensable, neutral, humanitarian actor.”

A State Department official countered, calling UNRWA “a corrupt organization with a proven track record of aiding and abetting terrorists” and adding, “Everything is on the table. No final decisions have yet been made.”

Sanctions could include asset freezes and travel bans, with FTO designation among the most severe tools available. Questions also remain about how such action would affect foreign allies funding the agency.

Israeli Prime Minister Benjamin Netanyahu has long called for UNRWA’s dismantling, accusing it of anti-Israeli incitement. Since January 30, Israel has banned UNRWA operations on its territory, including East Jerusalem. Despite a US-brokered peace deal in October, ceasefire violations continue. UNRWA reports that more than 370 of its staff have been killed in Gaza during the conflict.

By Vafa Guliyeva