Chuck Holton
Politics • Culture • News
The USAID-Terror Connection
This isn't a scandal--it's a feature
March 13, 2025
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Hamas official Abdul Salam Haniyeh (second from left), son of terror leader Ismail Haniyeh, at the launch of a project in Gaza in 2023, organized by Islamic Relief and the Bayader Association. USAID has funded both organizations.

For years, we’ve exposed how the U.S. government has been funneling taxpayer dollars to organizations with ties to terrorism. The patterns were obvious. The red flags were everywhere. And yet, Washington kept writing the checks, ignoring the warnings from watchdogs and intelligence experts.

Now, the Middle East Forum has provided undeniable proof of what we’ve known all along. Their multi-year investigation has uncovered at least $164 million in approved grants to radical organizations, with $122 million going directly to groups aligned with designated terrorist entities. This isn’t some bureaucratic oversight—it’s a deliberate, systemic problem that’s been allowed to fester for decades.

The good news? The pipeline is finally being shut down.


USAID: A Global ATM for Terrorists

USAID—the agency that claims to provide humanitarian aid—has in reality served as a slush fund for terrorist-adjacent groups for years. This investigation uncovered millions of taxpayer dollars being handed directly to organizations operating in Hamas-controlled Gaza—and not by accident.

  • USAID officials have visited the offices of Hamas-linked groups and launched joint programs with them.
  • USAID funding has gone to organizations whose leaders have called for their land to be “cleansed from the impurity of the Jews.”
  • USAID beneficiaries openly glorify violence and celebrate terrorist attacks.

The worst part? The federal government knew all of this. And still, the money kept flowing.


State Department Complicity in Domestic Terror Funding

It’s not just foreign terrorist groups benefitting from U.S. taxpayer dollars. This report also confirms that the State Department has been funneling money to radical domestic organizations that fuel extremism right here in the U.S.

Take the Tides Foundation, which members of Congress have accused of funding pro-Hamas, anti-Jewish violence on college campuses across America. The very same mob that harasses Jewish students and disrupts universities? Subsidized with your tax dollars.

Then there are the major aid organizations like World Vision and Catholic Relief Services, which receive billions in federal funding but partner with terror-linked groups over and over again. These are organizations that, at best, don’t bother to vet their recipients—and at worst, know exactly where the money is going and do it anyway.


Systemic Corruption, Zero Oversight

The MEF report also confirms how deeply broken the system is when it comes to transparency and accountability.

  • USAID records are incomplete, missing, or outright deleted.
  • Millions in grants go to “anonymous beneficiaries” in terrorism hotbeds.
  • No real vetting process exists to ensure U.S. money isn’t funding radicals.

USAID’s own Office of Inspector General (OIG) has repeatedly warned about the failures in the system—stating outright that armed groups are taking advantage of U.S. funding, and that USAID’s grant process fails to catch extremist ties.

But for years, no one in charge cared enough to fix it.


Now, It’s Finally Being Shut Down

For those of us who have been calling this out for years, the revelations in this report are no surprise. What is different now is that, for the first time, something is actually being done about it.

The Trump administration is dismantling USAID as we know it, freezing most of its operations, and gutting the bloated bureaucracy that has kept this corruption alive. The decision to roll much of USAID’s functions into the State Department is a direct response to this kind of waste, fraud, and terror funding.

For years, the establishment resisted shutting down USAID’s corrupt pipeline, even as proof of its failures piled up. Now, the money is finally drying up.

Of course, there are critics—those who claim that cutting off funding will hurt genuine humanitarian efforts. But let’s be clear: there was nothing “humanitarian” about subsidizing organizations tied to Hamas. The same bureaucrats and NGO leaders who enabled this fraud are the ones crying the loudest now that their gravy train is ending.


This is Vindication—But the Fight Isn’t Over

This MEF report is the final nail in the coffin of any argument that USAID was just making mistakes or that these grants were slipping through the cracks. This was deliberate. This was systemic. And we’ve been right about it all along.

But even with USAID being dismantled, the fight isn’t over.

  • How much of this funding has already fallen into the wrong hands?
  • What other agencies are still enabling this corruption?
  • Will the same bad actors just find new ways to funnel money to extremists?

USAID may be going away, but the people who allowed this to happen are still in Washington, and they will try to keep the money flowing any way they can.

This is why full transparency and accountability must be the next step.

  • Every single grant tied to terrorism must be exposed.
  • Every bureaucrat who enabled this must be held accountable.
  • Every agency that funds NGOs must be forced to show exactly where the money is going.

Shutting down USAID’s corruption is a major victory, but if we don’t stay on top of this, the same criminals will just find a new way to keep the scam going.

The truth is finally out. The pipeline is shutting down. Now, it’s time to make sure it stays that way.

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