When UNRWA announced on June 12 that it would terminate 70 employees in the Gaza Strip, the announcement reverberated across the humanitarian world. The move came a week after a United States Agency for International Development (USAID) Office of Inspector General (OIG) released a report on June 5 that named more than 100 UNRWA staff members as having ties to Hamas and, in some cases, direct participation in the October 7, 2023 attacks on Israeli civilians.

The OIG findings paint a disturbing picture of personnel holding dual roles. For instance, a deputy school principal was also listed as a deputy company commander in the al‑Qassam Brigades, while a classroom teacher was identified as a sniper for Hamas. Several educators were alleged to have taken part in the October 7 assault. The report argues that such dual roles blurred the line between humanitarian service and militant activity, creating a pattern that could compromise the agency’s neutrality.

UNRWA’s interim Commissioner‑General, Christian Saunders, described the firings as a “necessary, preventative step” to protect refugees and remaining staff. In a statement released by the agency, Saunders emphasized that the action does not constitute an admission of guilt. “We are acting to safeguard the safety and security of the people we serve and the humanitarian workers on the ground,” he said.

The agency’s credibility has been under strain since the October 2023 attacks. In January 2026, UNRWA terminated twelve staff members following initial allegations of involvement. A United Nations Office of Internal Oversight Services probe in April 2026 found that one case was dismissed due to lack of evidence, while six others remained under investigation.

The USAID OIG report was the catalyst for the latest round of firings. A senior U.S. official briefed on the investigation told the Jewish News Syndicate that UNRWA’s decision “appears as a direct response to the USAID Inspector General’s active and ongoing investigation.” The report also noted that Israel’s intelligence has long claimed that roughly 12 % of UNRWA’s Gaza staff—about 1,462 people—were members of Hamas or other designated terrorist organizations.

Israel’s Foreign Ministry reacted sharply. On social media the ministry called UNRWA’s statement a “cynical cover‑up” that shifted blame onto Israel while avoiding mention of Hamas. The ministry accused the agency of “willfully harboring terrorists” and of turning its facilities into insurgent headquarters.

The firings arrive amid intensified scrutiny from U.S. donors. The United States is one of UNRWA’s largest financial backers, and several Western governments had frozen funding after the initial allegations. While some donors have resumed contributions, the agency’s budget for 2025 was projected at $880 million, with only about $570 million received, creating a shortfall that could threaten operations.

UNRWA operates in five areas—Jordan, Lebanon, Syria, the Gaza Strip, and the West Bank (including East Jerusalem). In Gaza, the agency provides food, education, health care, and shelter to a population of more than two million people, many of whom are registered refugees. The Gaza Strip is heavily blockaded by Israel and Egypt, and UNRWA must coordinate with Hamas‑controlled authorities to move aid.

The agency’s leadership stresses that it has no police, judicial, or intelligence powers. “We rely on the cooperation and goodwill of sovereign states, including Israel, to vet our workforce and maintain political neutrality,” a UNRWA spokesperson said. The spokesperson also noted that without coordination, aid distribution could collapse, potentially leading to a humanitarian catastrophe.

The broader geopolitical fallout extends beyond Gaza. In Washington, D.C., lawmakers have debated sanctions against UNRWA, with some officials labeling the agency a “subsidiary of Hamas.” The United Nations Security Council has yet to adopt a resolution addressing the agency’s status, and the International Court of Justice has not ruled on the matter.

UNRWA’s current challenge is to cleanse its ranks of individuals with militant ties while ensuring that millions of refugees continue to receive essential services. The agency’s leadership has called for “proof of staff collaboration with Hamas” from Israel, but Israeli authorities have repeatedly denied providing such evidence.

The situation remains fluid. UNRWA has not announced further firings, and no new funding commitments have been confirmed. The agency’s next steps will likely involve additional internal investigations and negotiations with donor governments. Until a clear resolution emerges, the humanitarian needs of Gaza’s population remain at risk.