A U.S. government watchdog has found significant deficiencies in a United Nations investigation into whether employees of its Palestinian relief agency participated in the Hamas-led Oct. 7, 2023, terrorist attacks against Israel, raising new questions about how the U.N. handled allegations of Hamas infiltration within the agency.

The findings came from the U.S. Agency for International Development Office of Inspector General, or USAID OIG, a statutorily independent law-enforcement and oversight entity responsible for conducting audits, evaluations and investigations involving U.S. foreign assistance. The watchdog operates under the Inspector General Act and provides its findings to Congress, government agencies and the public. The office says its work is intended to promote accountability and detect fraud, waste, abuse and mismanagement involving foreign assistance.

The USAID inspector general reviewed the work of the U.N. Office of Internal Oversight Services, which investigated allegations against 19 United Nations Relief and Works Agency employees in 2024. The OIOS investigation concluded there was no evidence against one employee, insufficient evidence against nine others and evidence involving the remaining nine that could indicate participation in the Oct. 7 attacks if the evidence could be authenticated. Those nine employees were terminated.

The USAID OIG's December 2025 review, which was requested by Congress, found major deficiencies in the U.N. investigation. Among the concerns was the OIOS decision to narrowly focus on whether the employees had directly participated in the Oct. 7 attacks rather than examining broader evidence of possible affiliations with Hamas.

The U.N. investigators also rejected key intelligence supplied by Israel, including intercepted audio recordings and cellphone data, because they said they could not independently authenticate the materials. The USAID watchdog challenged that reasoning, finding no evidence that called the authenticity of the Israeli-collected material into question.

A Western diplomat briefed on the findings told the Washington Free Beacon that the OIOS investigation was widely viewed in New York as a “complete cover-up,” alleging that it failed to adequately examine links between UNRWA employees and Hamas. That characterization was the diplomat's assessment and was not presented as a finding independently established by the USAID OIG.

The latest findings come as the USAID OIG has continued its own investigations into UNRWA. In June, the watchdog said it had referred 101 current or former UNRWA employees for suspension or debarment consideration based on alleged participation in the Oct. 7 attacks and/or affiliation with Hamas' military wing, the al-Qassam Brigades. The individuals included teachers, school officials, security personnel, medical professionals and other UNRWA employees.

The watchdog has continued making additional referrals. In August, USAID OIG said more than 100 current or former UNRWA staff members had been referred to the State Department for independent review and possible suspension or debarment over alleged participation in the Oct. 7 attacks or affiliation with Hamas and other U.S.-designated terrorist organizations.

Senate Judiciary Committee Chairman Chuck Grassley has demanded that the United Nations explain the deficiencies identified in the review.

The U.N. has maintained that it terminated employees when evidence warranted such action and continues providing humanitarian services in Gaza. The USAID OIG's findings, however, add to continuing scrutiny from U.S. officials over whether UNRWA has adequately addressed allegations that Hamas has infiltrated its personnel and operations.