Trump administration officials are reportedly engaged in advanced talks about imposing terrorism-related sanctions on the United Nations Relief and Works Agency, according to sources cited by Reuters. The discussions have raised significant legal and humanitarian concerns within the State Department, as UNRWA provides essential services to millions of Palestinian Arabs across several countries. The agency has faced mounting criticism over alleged ties to Hamas, especially after evidence emerged in 2024 implicating staff in the October 7 attacks. Options being considered include designating UNRWA as a foreign terrorist organization, a move that would be unprecedented and could severely impact its operations. While some officials have condemned UNRWA as corrupt and complicit with terrorists, others warn that such sanctions would be both unprecedented and unwarranted. No final decisions have been made, and the White House has declined to comment.