The Trump Administration Is Considering Designating UNRWA as a Foreign Terrorist Organization
Observers warn that any broad action against the agency, including terrorism-related sanctions, would disrupt humanitarian assistance for refugees. Senior officials in President Donald Trump’s administration are engaged in advanced discussions about imposing terrorism-related sanctions on the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), according to two sources, raising significant legal and humanitarian concerns within the US State Department.
UNRWA operates in Gaza, the West Bank, Lebanon, Jordan, and Syria, providing education, health care, social services and shelter to millions of Palestinians. Senior UN and Security Council officials describe the agency as the backbone of humanitarian response in Gaza, where two years of conflict between Israel and the Palestinian movement Hamas have created a severe humanitarian crisis. Despite this, the Trump administration accuses UNRWA of links to Hamas, claims the agency has strongly denied.
The United States has long been UNRWA’s largest donor but suspended its funding in January 2024 after Israel accused about a dozen staff members of involvement in the Hamas attack on 7 October 2023. Later, in October 2025, Secretary of State Marco Rubio claimed the agency had become “subordinate to Hamas,” which the US designated a terrorist organization in 1997.
It remains unclear whether discussions focus on sanctioning the entire agency or only specific officials or operations. US officials have not yet settled on a precise form of sanctions. According to the sources, one option discussed is designating UNRWA as a “foreign terrorist organization,” which would result in severe financial isolation, although it is not confirmed whether this is being seriously considered.
Any sweeping action could destabilize relief operations and cripple an agency already suffering from a funding crisis. Such a move would be unprecedented and extraordinary, given that the United States is a member state and host country of the United Nations, which created UNRWA in 1949.
William Deere, director of UNRWA’s Washington office, said the agency would be “deeply disappointed” if US officials were indeed discussing such a designation. He described it as “unprecedented and unjustified.” He noted that four independent bodies, including the US National Intelligence Council, have examined UNRWA’s neutrality since January 2024 and all concluded that the agency remains a vital and neutral humanitarian actor.
A State Department official, however, described the agency as “corrupt, with a proven record of aiding and abetting terrorists,” adding that no final decision has been made.
The State Department and other federal agencies have several sanction mechanisms at their disposal, including asset freezes and travel bans targeting individuals and specific entities. The “foreign terrorist organization” designation is one of the most severe tools and is typically applied to groups responsible for killing civilians, such as branches of ISIS or Al-Qaeda.
Many major US allies contribute to UNRWA funding, raising questions about whether foreign officials might face sanctions for supporting the agency should Washington target it or its leadership on terrorism-related grounds.
The UN reported that nine UNRWA employees may have participated in the 7 October 2023 attack, and they were dismissed. It also noted that a Hamas leader killed in Lebanon had previously worked for UNRWA. The UN has pledged to investigate all allegations and has repeatedly asked Israel for evidence, which has not yet been provided.
The two sources familiar with the discussions expressed, under anonymity, serious humanitarian and legal concerns due to the agency’s unique role in supporting displaced Palestinians. They said politically appointed officials within the State Department, serving since the beginning of Trump’s term, are driving efforts to impose terrorism-related sanctions. Many professional staff members, including lawyers responsible for drafting designation language, oppose this direction.
In recent weeks, the issue has been debated among officials in the State Department’s Counterterrorism Bureau and members of the Policy Planning Staff, an influential policy-shaping body. Gregory LoGerfo, nominated to lead the counterterrorism office, recused himself pending Senate confirmation.
Israeli Prime Minister Benjamin Netanyahu has long advocated dismantling UNRWA, accusing it of inciting against Israel. As of 30 January, Israel has banned the agency from operating in territories under its control, including annexed East Jerusalem, and prohibited any communication between UNRWA and Israeli authorities.
Israel and Hamas reached a US-brokered ceasefire in October, but violations persist, and the implementation of broader steps toward ending the war has stalled. UNRWA has reported that more than 370 of its staff members have been killed in Gaza since the start of the conflict.
