The U.S. State Department has issued a report to Congress urging the complete dismantling of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), citing its deep ties to Hamas, its involvement in the October 7 terror attacks, and its refusal to return U.S. funds. The report, obtained by Fox News Digital, is part of an assessment that concludes the agency is beyond reform and must be abolished. This marks a significant escalation in the U.S. stance on UNRWA, which has long been a point of contention due to its funding practices and alleged complicity in acts of terrorism.
The Trump administration previously demanded that UNRWA return all remaining U.S. funds, a request that the agency initially agreed to but has not yet fulfilled. The U.S. State Department has continued to cut funding to UNRWA since January 2024, and Secretary of State Marco Rubio’s public call for the agency’s dissolution has further heightened the pressure on U.N. and donor nations like Japan and Germany to reassess the agency’s viability. According to the report, the U.S. is working to cease participation in all working-level UNRWA bodies at the United Nations, indicating a broader effort to isolate the agency from international influence.
Former Israeli Minister of Defense Yoav Gallant alleged in February 2024 that dozens of UNRWA employees were directly involved in the Hamas attacks on Israeli civilians on October 7. Israeli Ambassador to the U.N. Danny Danon also called for the closure of UNRWA operations in Jerusalem, citing security risks. The U.S. government has classified Hamas as a foreign terrorist organization, reinforcing its view that UNRWA’s alignment with extremist groups makes it a threat to regional stability.
Recently, the U.N. fired nine employees from UNRWA who were suspected of participating in the Hamas massacre of over 1,200 people, including more than 30 Americans, on October 7. These findings, which were reported by Fox News Digital, have intensified calls for UNRWA to be reformed or dissolved. Despite these allegations, the Biden administration had previously provided $1 billion in U.S. taxpayer funding to UNRWA since 2021, though this support was suspended in 2024.
Israel’s Knesset (Parliament) has also taken a strong stance, banning UNRWA due to its reported support for Hamas terrorism. This has led to widespread criticism from U.S. lawmakers and watchdog groups, which have provided evidence to the U.N. showing that UNRWA has historically glorified Palestinian terrorism and antisemitism. The State Department’s report underscores a growing consensus that the agency’s mission and values are incompatible with international standards for humanitarian aid and anti-terror measures.