The United States Agency for International Development (USAID) has been accused of sending over $2 billion in aid to Hamas since the October 7, 2023, attacks on Israel, raising concerns over how U.S. foreign aid is allocated. The claims were presented during a House Committee hearing on USAID’s financial practices, bringing renewed scrutiny to the agency’s funding policies.
 

Additionally, reports suggest that USAID provided financial assistance to Falah-e-Insaniat Foundation (FIF), a front for the Pakistan-based terrorist group Lashkar-e-Taiba (LeT), despite FIF being designated as a terrorist organization by the U.S. government. Lashkar-e-Taiba was responsible for the 2008 Mumbai attacks, which killed 166 people and injured over 300.The accusations have sparked controversy, with lawmakers and security analysts questioning the oversight of American taxpayer funds and the potential risks posed by inadvertently financing organizations with known terrorist ties.
 

How USAID Allegedly Funded Terrorist Groups in Pakistan and South Asia

Despite FIF being banned by both India and the United States, reports claim that USAID channeled funds to the organization through Helping Hand for Relief and Development (HHRD), a Michigan-based charity that has alleged ties to jihadist groups in South Asia.Middle East expert Amjad Taha revealed on X (formerly Twitter) that USAID had provided direct funding to HHRD, which then sent at least $110,000 to jihadist organizations, including FIF. Taha stated that this money ultimately reached terrorist groups linked to the 2008 Mumbai attacks, raising concerns about how U.S. foreign aid is being monitored and distributed.
 

The Lashkar-e-Taiba (LeT) network, including its front Jamaat-ud-Dawa (JuD), has been linked to multiple terror attacks across India, particularly in Jammu and Kashmir. Both groups are designated as terrorist organizations by the U.S. State Department, yet recent findings indicate that USAID funds may have indirectly supported their operations.In the past, USAID has faced criticism for allegedly continuing to support organizations under investigation for terrorism links. These latest accusations further fuel the debate over foreign aid accountability and the potential misuse of U.S. taxpayer dollars.
 

Policy Shifts and Oversight of U.S. Foreign Aid

The allegations against USAID have intensified discussions about the need for stricter oversight of foreign aid distribution. In response to ongoing concerns, the Trump administration implemented significant cuts to USAID’s global funding, reducing foreign contracts by 90% and slashing over $60 billion from assistance programs worldwide.Critics argue that such drastic reductions in U.S. foreign aid may weaken diplomatic and humanitarian efforts, while proponents insist that reforms are necessary to prevent funds from reaching extremist groups.
 

With growing concerns about USAID’s role in funding organizations linked to terrorism, calls for comprehensive audits, stricter financial tracking, and increased congressional oversight have gained traction. The outcome of these discussions could shape the future of U.S. international aid policies and redefine how funding is allocated to organizations operating in conflict-prone regions.As investigations continue, the revelations surrounding USAID’s alleged financial ties to Hamas, FIF, and other terror-linked entities are expected to remain a focal point in congressional debates on foreign aid accountability.