August 4, 2025 | Flash Brief

‘Irredeemably Compromised’: UNRWA Sued by Terror Victims as U.S. Calls for Agency’s Dismantlement

August 4, 2025 | Flash Brief

‘Irredeemably Compromised’: UNRWA Sued by Terror Victims as U.S. Calls for Agency’s Dismantlement

Latest Developments

  • UNRWA Aids and Fuels Terrorism: American victims of Hamas and Hezbollah terrorism are suing the UN agency UNRWA for aiding the terrorist organizations and fueling their terrorism. The case, filed in federal court in Washington, DC, on July 31, seeks compensatory and punitive damages against UNRWA, arguing that the agency violated antiterrorism laws by providing direct and indirect support to both terrorist groups in the Gaza Strip and Lebanon. In April, the Justice Department reversed its longstanding policy that UNRWA was immune from civil liability and found that the agency could be held accountable for Hamas’s October 7, 2023, atrocities.
  • UNRWA Allows Terrorists to Use Civilian Infrastructure: The plaintiffs in the lawsuit allege that UNRWA hired Hamas members as employees, allowed Hamas weapons to be stored in UNRWA buildings, permitted Hamas to build tunnels under UNRWA facilities, and allowed the terrorist organization to infiltrate clinics, schools, and other institutions in Gaza and the West Bank. They also accuse UNRWA of sowing hatred toward Jews and Israelis through their “positions, policies, educational material, and other services.”
  • U.S. Calls for UNRWA Dismantlement: A new State Department report transmitted to Congress on July 29 formally called for disbanding the agency. “The Administration has determined UNRWA is irredeemably compromised and now seeks its full dismantlement,” the report stated. After revelations that at least 13 UNRWA employees took part in Hamas’s October 7 assault and that at least 12 percent of its employees are affiliated with either Hamas or Palestinian Islamic Jihad, the Biden administration cut funding to the agency in January 2024. The Trump administration requested in March that UNRWA return the balance of all unspent U.S. funding in its accounts. While UNRWA’s Washington office promised to do so, it has “not yet completed the action,” according to the report.

FDD Expert Response

“UNRWA has been exploiting international aid dollars to teach hatred and glorify terrorism for decades. Trump understood this long before the atrocities of October 7 and ceased funding UNRWA during his first administration. His call to dismantle the organization is the logical next step. Shutting down UNRWA and allowing other aid organizations to take over providing much-needed services to those in need — without UNRWA’s radical agenda — is good for Israel, good for Palestinians, and good for peace.” — Enia Krivine, Senior Director of FDD’s Israel Program and National Security Network

“The Trump administration’s formal call to dismantle UNRWA is a critical step toward long-overdue accountability. Congress must now follow through to ensure funding remains zeroed out, and we should encourage our allies to do the same. UNRWA’s complicity in Hamas’s brutal reign and its deep-rooted ties to terror have made the organization unsalvageable. Dismantling it clears the way for real humanitarian solutions that prioritize peace over perpetuating conflict and hate.” — Nick Stewart, Senior Director of Government Relations, FDD Action

“UNWRA prolongs the conflict by indulging maximalist Palestinian demands. This should be enough to discredit the agency as a political body masquerading as a humanitarian one. But it is UNWRA’s support for terrorism that might prove to be its undoing. Either way, UNWRA is a fatally flawed UN agency that needs to be eliminated.” — David MayResearch Manager and Senior Research Analyst

FDD Background and Analysis

UNRWA Forces Refugee Status on Palestinians in Perpetuity — Even Against Their Wishes,” by David May

Future of UNRWA Uncertain as Agency Faces $200 Million Deficit,” FDD Flash Brief

The Department of Justice’s long-awaited reckoning for UNRWA has arrived,” by Jonathan Schanzer and Enia Krivine

Israeli Victims of Hamas October 7 Atrocities File Lawsuit in New York Against UNRWA,” FDD Flash Brief