Statement from CLARITy Coalition on USAID Funding Islamist Groups

Recent investigations have revealed a troubling pattern of the United States Agency for International Development (USAID) allocating funds to organizations with Islamist affiliations, some allegedly linked to terrorism. A report by the Middle East Forum documents. that USAID has provided about $164 million to groups with Islamist connections, with at least $122 million benefiting organizations tied to designated terrorist groups.

For instance, USAID awarded a $110,000 grant to Helping Hand for Relief and Development, a Michigan-based charity that has collaborated with jihadist organizations in South Asia. Additionally, funding has been linked to the Falah-e-Insaniat Foundation , a front for Lashkar-e-Taiba, the terrorist group responsible for the 2008 Mumbai attacks.

Beyond direct financial support, USAID has also been involved in controversial resource allocations. A recent investigation revealed that USAID supplied $310 million in US taxpayer dollars to finance the construction of a cement factory in Gaza, which is now controlled by a private company reportedly aligned with Hamas activities. The factory’s cement has allegedly been used to help build tunnels and military infrastructure for Hamas, a U.S.-designated terrorist organization.

These findings raise serious concerns about the oversight and allocation of U.S. foreign aid. We recommend the following:

  • Transparency: The CLARITy Coalition calls for greater transparency in USAID’s funding decisions, particularly concerning organizations operating in regions with strong Islamist influences.
  • Accountability: We call for stricter oversight to ensure that U.S. taxpayer dollars do not support activities that contradict American values or security interests.
  • Audit and Review: We seek an immediate audit of all USAID funding to non-governmental organizations, followed by a comprehensive review of current vetting processes to prevent future misallocations.
  • Policy Reform: We urge a reform of USAID policies to include stricter guidelines and monitoring systems to prevent aid from being diverted to extremist or terrorist entities.

The CLARITy Coalition remains committed to advocating for the responsible use of aid, ensuring it reaches those in genuine need without inadvertently supporting groups that threaten peace and security. We urge Congress and the Trump administration to take swift action in addressing these allegations.