U.S. Taxpayer Dollars Helped Fuel Anti-Netanyahu Protests in Israel and Fund Terror-Linked NGOs
Congressional investigation reveals taxpayer money channeled to anti-Netanyahu activism, ideological education, and terror-linked NGOs.
In 2023, as hundreds of thousands of Israelis took to the streets to protest judicial reforms proposed by Prime Minister Netanyahu’s government, most observers saw the unrest as a passionate internal debate—a sovereign democracy grappling with constitutional questions.
But according to a damning new report from the House Foreign Affairs and Judiciary Committees, the protests weren’t just organic. They were also subsidized by U.S. taxpayer dollars, funneled through a complex web of nonprofits, fiscal intermediaries, and grantee networks that reached from Washington to Ramallah.
On March 26, 2025, the House Committees on the Judiciary and Foreign Affairs sent formal inquiries to six American and Israeli NGOs, investigating whether federal grants—particularly from USAID and the State Department—were used to finance anti-Netanyahu protests in Israel. The resulting memorandum outlines how millions in U.S. taxpayer dollars were funneled through nonprofit networks to support civil unrest abroad, how grants ended up in the hands of foreign NGOs working to undermine Israel’s government, radicalize Israeli youth, and partner with groups tied to U.S.-designated terrorist organizations to influence Israel’s domestic politics.
U.S. Funds Reached Anti-Government Protest Leaders in Israel
The Israeli NGO Blue White Future (BWF), a major organizer of protests against Prime Minister Netanyahu’s judicial reform, received $22 million in 2023—$18M from the PEF Israel Endowment Funds and $4M from the Middle East Peace Dialogue Network (MEPDN). PEF itself received federal funds via Rockefeller Philanthropy Advisors (RPA), a direct recipient of over $50 million in U.S. grants. BWF leaders called Israel’s elected government a "dictatorship" and openly coordinated the protest coalition's headquarters.
Under Israeli law, BWF’s actions may violate nonprofit guidelines by engaging in overt political activity
U.S. State Department Funded Radical Curriculum in Israeli High Schools
The NGO Movement for Quality Government in Israel (MQG), another protest leader, received $42,000 from the U.S. State Department to run “Civic Activism Training” in Jerusalem high schools. MQG has called for “civil war” and legally challenged the Netanyahu government—including petitions to bar elected officials from office. MQG was pushing anti-Zionist, secular, post-nationalist values onto religious students, likening its curriculum to American-style Critical Race Theory.
$884 Million in U.S.-Based Funding to Israeli Protest-Linked Groups
From 2021 to 2024, PEF Israel Endowment Funds distributed nearly $884 million to over 1,000 Israeli organizations, including protest participants like MQG, Physicians for Human Rights Israel, and Darkenu. PEF moved funds through donor-advised funds (DAFs), which obscure final recipients but include at least $187,000 in federal grant funding via RPA. IRS law prohibits 501(c)(3) organizations like PEF from engaging in foreign political activity, yet the evidence points to clear coordination.
Jewish Communal Fund Channeled $42.8 Million to Protest Networks
The Jewish Communal Fund (JCF) contributed $41.2 million to PEF and $1.67 million to MEPDN, both top funders of BWF. Though JCF denies receiving direct U.S. government funding, it accepted DAF contributions from PEF, which did. JCF also funds U.S. political groups like the ACLU and the Obama Foundation, raising further questions about its use of charitable exemptions while financing foreign political activity.
Middle East Peace Dialogue Network Operated a Parallel Protest Network
MEPDN not only donated to BWF but also backed other protest groups, including “Have You Seen the Horizon Lately (HYSHL),” which worked to mobilize Israel’s Arab citizens against the Netanyahu government. HYSHL co-organized the "Dead Class Citizens" campaign with Qadaya, a project of the Arab Center for Alternative Planning, and launched a propaganda campaign labeling judicial reform a “regime coup.” MEPDN received $870,500 from JCF’s DAFs during this time.
Rockefeller Philanthropy Advisors Linked to Protest and Terror Funding
RPA, a recipient of over $50 million in U.S. grants, gave $187,000 to PEF and $557,000 to its partner, Rockefeller Brothers Fund (RBF). RBF in turn donated hundreds of thousands to the New Israel Fund, Brothers and Sisters in Arms, and other protest-driving NGOs. RPA’s refusal to fully disclose its use of government money raises red flags over potential legal violations.
U.S. Funds Reached Terror-Tied NGOs
The investigation revealed U.S. taxpayer funds reached Bayader, a Gaza-based group that coordinated with Hamas, just days before the October 7 attacks. Similarly, USAID has long supported ANERA, despite longstanding allegations that it funds Palestinian Islamic Jihad activities and extremist kindergartens. Other NGOs receiving U.S. funds include:
Unlimited Friends Association (UFA): Pays families of terrorists and publishes antisemitic content.
Palestine Children's Relief Fund (PCRF): Operates in Hamas-controlled hospitals; omits funding disclosures.
Defense for Children International – Palestine (DCI-P): Tied to the PFLP terror group.
Samidoun, sponsored by Alliance for Global Justice, celebrated the October 7 massacre and led U.S. college protests.
The Committee's investigation paints a disturbing picture: U.S. taxpayer dollars, meant for development and diplomacy, were weaponized—supporting anti-government protests in a close ally, financing political subversion, and enriching terror-linked organizations.
We knew this but everyone getting the cash said we were lying..