The Trump administration is considering imposing terrorism-related sanctions on the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), according to Reuters, in a move that has raised significant legal and humanitarian concerns within the State Department.
UNRWA operates in Gaza, the West Bank, Lebanon, Jordan, and Syria, providing essential aid, schooling, healthcare, social services, and shelter to millions of Palestinians. Consequently, the agency plays a crucial role in the aid response in Gaza, where a two-year war between Israel and Hamas has caused a humanitarian crisis.
However, the Trump administration has accused UNRWA of having links with Hamas, allegations that the agency has vigorously disputed. Washington was once UNRWA’s largest donor but halted funding in January 2024 after Israel accused about a dozen UNRWA staff of participating in the October, 2023, Hamas attack that triggered the war in Gaza.
US Secretary of State Marco Rubio has accused the agency of becoming “a subsidiary of Hamas,” which the US designated as a terrorist organization in 1997.
Potential Sanctions and Impact
It remains unclear whether the discussions are focused on sanctioning the entire agency or specific UNRWA officials or parts of its operations. Among the possibilities discussed are declaring UNRWA a “foreign terrorist organization” (FTO), which would severely isolate the agency financially. Any blanket move against the entire organization could disrupt refugee relief efforts and cripple UNRWA, which is already facing a funding crisis.
Additionally, sanctioning UNRWA on terrorism-related grounds would be an unprecedented and striking move, given that the United States is a member and the host country of the United Nations, which created UNRWA in 1949.
William Deere, director of the UNRWA office in Washington, expressed disappointment at the potential FTO designation. He stated that such a move would be “both unprecedented and unwarranted.” Deere highlighted that four independent entities, including the US National Intelligence Council, have investigated UNRWA’s neutrality and concluded that the agency is an indispensable, neutral, humanitarian actor.
In response to a request for comment, a State Department official called UNRWA a “corrupt organization with a proven track record of aiding and abetting terrorists.” The official added, “Everything is on the table. No final decisions have yet been made.” The White House has not responded to requests for comment.
Internal Debate
Within the State Department, there is a divide over the potential sanctions, with politically-appointed staff generally leading the push for sanctions, while many career officials, including some lawyers responsible for drafting designations language, have pushed back. Officials in the State Department’s Bureau of Counterterrorism and members of its Policy Planning Staff have discussed the potential sanctions..
The debate over sanctioning UNRWA highlights the complex balance between security concerns and humanitarian needs. As discussions continue, the impact on the millions of Palestinians who rely on UNRWA’s services remains a critical consideration.



