Cruz sounds alarm over $400M Hamas-era provision in Board of Peace plan — issues blunt warning

U.S. officials have for years warned that Hamas has exploited ostensibly civilian and humanitarian funding streams to support its terrorist infrastructure, fueling concerns over whether money entering Gaza can be kept out of the terror group's hands as a new U.S.-backed governing structure prepares to take control.

The Treasury Department has repeatedly targeted what it describes as Hamas financing networks, including a secret investment portfolio, sham charities and organizations that raised money under the guise of humanitarian work while supporting Hamas' military wing.

Those concerns resurfaced this week after Israel's Kan News reported that a provision in the Board of Peace's Gaza roadmap could allow up to $400 million to address unpaid obligations accumulated during Hamas' rule, including money owed to public-sector workers, suppliers and contractors.

The dispute is over whether a successor government can settle legitimate obligations inherited from nearly two decades of Hamas rule without indirectly benefiting the terrorist group.

Critics warn that doing so could relieve financial burdens associated with Hamas' rule or create opportunities for the group to siphon off resources while it retains influence on the ground.

Board officials argue the mechanism is instead designed to allow a successor government to preserve essential services and relationships with legitimate workers and suppliers — with each claim individually vetted and any payment that could benefit Hamas rejected.

TRUMP ADMINISTRATION PROBES UNRWA OVER ALLEGED EMPLOYMENT OF 1,500 TERRORISTS Nickolay Mladenov, the Board of Peace's high representative for Gaza, sharply rejected the characterization that the provision amounted to a financial agreement with Hamas.

"The claims that there is a financial agreement between the Board of Peace and Hamas are false," Mladenov wrote in Hebrew on X Wednesday, adding that no such proposal had been "discussed, negotiated, or considered." He said the Board's objective remained the complete disarmament of Hamas and the establishment of civilian governance backed by an international security presence.

Sen.

Ted Cruz, R-Texas, told Fox News Digital that he remained alarmed by the provision.

"I'm deeply concerned about these reports.

Terrorists use money as fungible and they build credibility by having international donors finance their debts, which is why Congress long ago banned money from going to Palestinian governments in the West Bank," Cruz said.

"We also know that international donors paid for Hamas to build terrorist infrastructure across the Gaza Strip in the first place, and shouldn't be trusted to direct reimbursement money," Cruz continued.