At USAID, Funding for Terror-Tied Groups and Internal Hostility Toward Israel Goes Back Years

At USAID, Funding for Terror-Tied Groups and Internal Hostility Toward Israel Goes Back Years

  • February 10, 2025

Adam Kredo, Free Beacon

As the Trump administration works to shutter the United States Agency for International Development (USAID), current and former U.S. officials who worked closely with the embattled aid group say they watched for years as it funneled millions of dollars to anti-Israel advocacy groups and entities linked to terrorism.

That funding caused internal friction across multiple administrations, according to those who spoke with the Washington Free Beacon. In some cases, USAID fought to conceal how taxpayer funds were spent. And when it came to Israel, officials recalled battling USAID over funding for groups that worked to undermine the Jewish state or maintained ties to terror organizations.

A separate report, released in January by Israeli research organization NGO Monitor, outlined millions in USAID funding for two nonprofits—Mercy Corps and American Near East Refugee Aid—that “have closely coordinated with a Gaza-based ministry, run by a senior Hamas official identified by the U.S. Treasury Department as previously responsible for part of Hamas’ smuggling operation.”

When it resumed funding for the Palestinians in 2021, the Biden State Department issued an internal warning that there was a “high risk” Hamas would steal U.S. aid. But information about terror-tied grant recipients in Gaza and elsewhere came mostly from watchdog groups. When members of Congress pressed USAID on those grants, they were often obstructed.