US Considers Sanctions Related To Terrorism Against The United Nations Palestinian Refugee Body

Gaza refugees at UNRWA schools. (Source: WAFA)

JAKARTA - United States Government officials under President Donald Trump have held further discussions on imposing sanctions related to terrorism against the Palestinian refugee agency UN (UNRWA), according to two sources familiar with the matter, sparking serious legal and humanitarian concerns within the State Department.

UNRWA, operating in Gaza, the West Bank, Lebanon, Jordan and Syria, provides assistance, education, health care, social services, and housing for millions of Palestinian citizens and refugees.

UN top officials and the UN Security Council described UNRWA as the backbone of aid responses in Gaza, a two-year warbed between Israel and the Palestinian militant group Hamas releasing a humanitarian catastrophe.

However, President Trump's administration accuses the agency of having ties to Hamas, a charge UNRWA strongly denies.

Washington has long been UNRWA's largest donor, but halted funding in January 2024 after Israel accused some a dozen UNRWA staff of participating in the deadly Hamas attack on October 7, 2023 that sparked the war in Gaza.

US Secretary of State Marco Rubio later accused the agency in October this year of being a "child of a Hamas company," which the US designated as a terrorist organization in 1997.

It is not yet clear whether the current US discussions focus on imposing sanctions on the entire agency - or only on certain UNRWA officials or part of its operations, and US officials do not seem to have set the right types of sanctions they will impose on UNRWA.

Among the possibilities discussed by State Department officials including declaring UNRWA a "foreign terrorist organization," the source said, although it is not yet clear whether the option - which would seriously isolate UNRWA financially - is still a serious consideration.

Every comprehensive step towards the entire organization can disrupt refugee aid efforts and paralyze UNRWA, which is already facing a funding crisis.

Giving UNRWA sanctions on the basis of terrorism would be very surprising and unusual, as the United States is the United Nations member and host country, which founded the United Nations Agency for Assistance and Work (UNRWA) in 1949.

UNRWA office director in Washington William Deere said the agency would be "disappointed" if US officials actually discussed determining it as a Foreign Terrorist Organization (FTO). He said the move would "unprecedented and groundless."

"Since January 2024, four independent entities have been investigating UNRWA neutrality, including the US National Intelligence Council. Despite happening at different times and from different perspectives, they have all come to the same conclusion: UNRWA is a neutral and indispensable humanitarian actor," Deere said.

Responding to a request for comment, a State Department official called UNRWA a "corrupt organization with a proven track record of helping and supporting terrorists."

"Everything is still open," said the official.

"No final decision has yet been made," he said.

The White House did not respond to a request for comment. The State Department and other departments have various sanction options they can use, which generally allow asset freezes and travel bans targeted at individuals and certain entities.

Determination as a Foreign Terrorist Organization (FTO) will be one of the hardest tools available to Washington and the designation is generally for groups killing civilians, such as ISIS and al-Qaeda branches.

Dozens of major US allies provide funding to UNRWA, raising questions about whether foreign officials can face sanctions for helping an organization, if Washington imposes sanctions on UNRWA or one of its officials on terrorism-related grounds.

Previously, the United Nations had stated nine UNRWA staff may have been involved in the Hamas attack on October 7, 2023, and have been fired. A Hamas commander in Lebanon - who died in September by Israel - was also found to have worked at UNRWA. The United Nations has pledged to investigate all charges filed and has repeatedly requested evidence from Israel, which the United Nations says has not been provided.

Sources familiar with UNRWA discussions, who requested anonymity to disclose unpublished discussions, have personally expressed various humanitarian and legal concerns, given the organization's unique role in helping Palestinian refugees.

Politically appointed staff at the State Department that has been stationed since the beginning of President Trump's term generally lead efforts to impose terrorism-related sanctions on UNRWA, the sources said.

Many State Department career officials - including some lawyers responsible for drafting sanctions - have refused, the sources added.

In recent weeks, potential sanctions have been discussed by officials at the State Department's Counterterrorism Bureau and members of the Policy Planning Staff, an influential internal policymaker entity, said one source.

Gregory LoGerfo, a candidate for the highest counterterrorism position in the department, has withdrawn from UNRWA discussions while he awaits Senate confirmation, the source added.

Israeli Prime Minister Benjamin Netanyahu has for years called for the disbandment of UNRWA, accusing him of instigating anti-Israel.