USAID Under Fire for Alleged Funding of Terrorist-Linked Organizations

 USAID Under Fire for Alleged Funding of Terrorist-Linked Organizations

Washington, D.C. – A shocking new report has raised serious concerns about the United States Agency for International Development (USAID), alleging that the agency has funneled millions of dollars to organizations with ties to terrorist groups. The revelations have sparked outrage among lawmakers, prompting urgent calls for stricter oversight and accountability measures to prevent U.S. taxpayer money from inadvertently supporting extremist networks.

Millions Funneled to Organizations with Terrorist Ties

An extensive investigation by the Middle East Forum has revealed that USAID and the U.S. State Department have allocated approximately $164 million in grants to radical organizations, with at least $122 million going to entities linked to terrorist groups.

Among the most alarming findings, USAID reportedly provided more than $900,000 to the Gaza-based Bayader Association for Environment and Development between 2016 and October 2023. Bayader has well-documented connections to Hamas-controlled entities, raising concerns about how federal funds are being distributed.

Further scrutiny has fallen on the American Near East Refugee Agency (ANERA), which received a $12.5 million grant from USAID in 2024. ANERA has long been accused of supporting individuals and organizations with extremist affiliations, including Palestinian Islamic Jihad (PIJ), a U.S.-designated terrorist group. Investigations have found that the organization has provided financial aid to institutions promoting anti-Israel indoctrination among children. 

Congressional Outrage and Calls for Reform

In response to these revelations, lawmakers have demanded immediate action. House Foreign Affairs Committee Chairman Michael McCaul has expressed deep concern over a $110,000 USAID grant to Helping Hand for Relief and Development (HHRD), a Michigan-based nonprofit with alleged links to Lashkar-e-Taiba and Jamaat-e-Islami—two organizations designated as terrorist entities by the U.S. government.

Chairman McCaul has called on USAID Administrator Samantha Power to suspend the grant and conduct a comprehensive review of funding practices to ensure taxpayer dollars are not inadvertently supporting terrorist-linked organizations. (House Foreign Affairs Committee)

Mounting Evidence of Misuse of Funds

Concerns over USAID’s funding oversight have been mounting for years. A recent report revealed that the agency indirectly funded an Al-Qaeda operative’s university tuition, further fueling criticism of lax vetting procedures. Additionally, USAID-branded aid packages have reportedly been found in Hezbollah-controlled weapons caches in Lebanon. 

The findings have ignited bipartisan outrage, with lawmakers demanding that USAID implement stricter protocols to prevent U.S. funds from being diverted to terrorist organizations.

The Need for Immediate Reform

The latest allegations underscore a critical need for enhanced transparency and accountability in how USAID distributes financial aid. Experts argue that the agency must implement more rigorous vetting procedures, periodic audits, and real-time tracking of funds to prevent misallocations.

“The fact that U.S. aid dollars have ended up in the hands of individuals and organizations tied to terrorism is unacceptable,” said a congressional staffer familiar with the investigation. “There must be comprehensive reforms to ensure humanitarian assistance goes where it’s intended and not into the pockets of those who threaten global security.”

As the international community watches closely, the United States faces mounting pressure to reform USAID’s funding policies and reinforce mechanisms that guarantee humanitarian aid reaches legitimate beneficiaries—without inadvertently strengthening terrorist networks.

The controversy surrounding USAID’s alleged funding of terrorist-linked organizations has exposed significant gaps in oversight that demand immediate attention. Lawmakers, security experts, and watchdog groups continue to push for stringent safeguards to prevent taxpayer dollars from being misused. As investigations unfold, the Biden administration and Congress face growing pressure to enact sweeping reforms to restore public trust in the nation’s foreign aid programs.