U.S. State Department Calls for U.N. Agency’s Shutdown Over Ties to Hamas, October 7 Attack Involvement

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The U.S. State Department has formally called for the dismantling of the United Nations Relief and Works Agency (UNRWA), citing deep-rooted links to terrorist activity and infiltration by Hamas operatives. A newly released report to Congress declares the agency, which primarily provides aid to Palestinians in the Gaza Strip, is “irredeemably compromised” and no longer viable as a functioning international body.

The State Department’s assessment, independently obtained by Fox News Digital, lays out a stark case against UNRWA, asserting that the agency’s operations are beyond reform. The report states, “The Administration has determined UNRWA is irredeemably compromised and now seeks its full dismantlement.” This follows months of escalating concern over the agency’s alleged involvement in terrorism, particularly its connection to the October 7, 2023, Hamas-led massacre in Israel.

The report outlines several key actions already taken by the U.S. government. In March 2025, the Trump administration ordered UNRWA to return all remaining unspent U.S. funds. While the agency’s Washington office indicated compliance, it has yet to complete the transfer. In a continued effort to distance itself, the U.S. began working in May to withdraw entirely from any UNRWA-related initiatives at the United Nations.

A State Department spokesperson, speaking to Fox News Digital, emphasised the gravity of the issue, stating that President Trump’s February 4 Executive Order noted UNRWA had reportedly been infiltrated by groups designated as foreign terrorist organisations by the Secretary of State. The spokesperson also pointed to direct UNRWA employee involvement in the October 7 atrocities.

Calls for UNRWA’s closure are gaining traction beyond Washington. Secretary of State Marco Rubio has publicly supported the agency’s dissolution, increasing pressure on donor countries such as Japan and Germany to reevaluate their roles in funding UNRWA. Rubio and President Trump have consistently argued that Hamas should have no governing authority in Gaza, including through international agencies that they may influence.

The Biden administration had allocated $1 billion in U.S. taxpayer funding to UNRWA between 2021 and 2023, before freezing aid in January 2024. That move followed rising concerns about corruption and terrorism-related accusations tied to the agency’s personnel.

Former Israeli Defence Minister Yoav Gallant stated in February 2024 that dozens of UNRWA employees were directly involved in the October 7 attack on Israeli civilians. In January, Israeli Ambassador to the United Nations Danny Danon called for the agency to shut down its operations in Jerusalem entirely.

The Washington Free Beacon first reported on the State Department’s internal report. As international scrutiny mounts, the future of UNRWA appears increasingly uncertain amid growing bipartisan support for its full dismantlement.