Overview
- Two people with direct knowledge say officials have held advanced deliberations on terrorism-related penalties against UNRWA, with no final decision reached.
- An FTO designation has been discussed as one option, though its current status is unclear and it would carry severe financial consequences for the agency.
- Political appointees are pushing sanctions while career diplomats and State Department lawyers raise legal and humanitarian objections.
- UNRWA’s Washington director cites four independent reviews, including by the U.S. National Intelligence Council, that deem the agency an indispensable, neutral humanitarian actor, while a State Department spokesperson calls UNRWA corrupt and says everything remains on the table.
- Potential sanctions could disrupt refugee relief and complicate relations with U.S. allies that fund UNRWA; Washington halted UNRWA financing in January 2024 after Israeli allegations, and the U.N. says nine staff suspected over Oct. 7 were fired.