By: Fern Sidman

A newly released memo from the House Judiciary Committee is shining a spotlight on what lawmakers describe as a troubling pattern of American taxpayer dollars being funneled to non-governmental organizations (NGOs) that allegedly played a role in anti-government protests in Israel prior to the Hamas attacks of October 7. According to an in-depth report by Fox News Digital, the memo outlines a network of funding that, lawmakers claim, was connected—directly or indirectly—to protests aimed at undermining the government of Israeli Prime Minister Benjamin Netanyahu.

The allegations come at a particularly sensitive time in U.S.-Israel relations and have triggered sharp responses on both sides of the Atlantic. Prime Minister Netanyahu himself amplified the claims by sharing a chart from the congressional memo on his social media account, stating that it confirmed long-held suspicions about foreign interference in Israel’s domestic affairs.

As quoted by Fox News Digital, Netanyahu wrote in Hebrew:

“An official document published by the U.S. Congress reveals astonishing information that confirms what many have long suspected: the previous U.S. administration transferred nearly a billion dollars to left-wing NGOs in Israel, with the aim of undermining the rule of the government.”

The House Judiciary Committee, joined by the House Committee on Foreign Affairs, has been conducting a joint investigation since March, seeking documentation from six U.S.- and Israeli-based NGOs about any financial support they may have received from the U.S. Agency for International Development (USAID) or the U.S. Department of State. The committees requested “documents related to any grants, cooperative agreements, or other awards” from these federal entities. To date, the organizations have produced approximately 380 documents in response to these inquiries.

The six NGOs at the center of the probe are: Blue White Future (BWF), Movement for Quality Government in Israel (MQG), PEF Israel Endowment Funds (PEF), Jewish Communal Fund (JCF), Middle East Peace Dialogue Network (MEPDN), and the Rockefeller Philanthropy Advisors,

According to the information provided in the Fox News Digital report, the Judiciary Committee’s memo alleges that these groups either received U.S. government funding or distributed funds to protest movements against judicial reform efforts initiated by the Netanyahu government. The committee’s memo describes these judicial reform protests as part of a broader effort to destabilize the democratically elected government of Israel.

In a specific example highlighted by Fox News Digital, the committee alleges that Blue White Future, a group associated with anti-judicial reform activism, received funds through NGOs linked to U.S. grants and that it provided support to the coalition headquarters organizing the protests.

However, BWF’s leadership categorically rejected the allegations. In a statement provided to Fox News Digital, BWF CEO Rotem Perelman-Farhi insisted that no government entity — American or otherwise — has ever provided funding to the organization.

“Following the publication of a memo by the House’s Judiciary Committee, Blue White Future categorically rejects the false and groundless allegations concerning its funding and activities,” Perelman-Farhi wrote. “No state entity, administration, or government body — American or otherwise (USAID included) — has ever provided funding to the organization, whether directly or indirectly. All donations to the organization originate from private donors who care deeply about Israel’s security and its future.”

PEF Israel Endowment Funds faced some of the most significant allegations, with the memo claiming that PEF provided more than $884 million to organizations associated with what the committee termed “anti-democracy protests.” This figure has raised concerns about the scope of foreign financial influence in Israeli internal affairs.

Similarly, Rockefeller Philanthropy Advisors, which reportedly received $20 million in federal grants, is suspected by the committee of directing portions of those funds to entities supporting the protest movement. The committee cited these distributions as potentially improper uses of taxpayer funds.

MEPDN, another group under scrutiny, is accused in the memo of potentially violating its 501(c)(3) non-profit status by engaging in political activities related to the protests. The committee questioned whether MEPDN’s funding of protest activities crosses the legal boundaries for tax-exempt organizations.

The Jewish Communal Fund, a New York-based entity, also emerged as a significant focus of the congressional inquiry. According to the information contained in the Fox News Digital report, the committee alleged that JCF distributed over $42.8 million to protest organizers and key funding groups behind the anti-judicial reform movement.

JCF, however, has publicly disputed the committee’s interpretation of its role. In a statement provided to Fox News Digital, JCF said it has cooperated fully with the committee’s inquiry but does not agree with the conclusions drawn in the memo. The organization also stressed that its donor-advised funds (DAFs) reflect the wishes of individual donors rather than the organization’s own directives.

“The memo from the Committees does not reflect an understanding that donors preserve advisory rights regarding the distribution of funds in their DAF,” JCF told Fox News Digital. “JCF makes grants at the recommendation of underlying donors and, as such, distributions from DAFs at JCF reflect the wishes of underlying donors.”

Despite the statements from the NGOs, the House Judiciary Committee has made it clear that the investigation remains open and is likely to expand. According to sources cited by Fox News Digital, more NGOs in both the U.S. and Israel may be added to the probe as additional documentation and financial records are reviewed.

The backdrop to these allegations is the widespread unrest in Israel over judicial reform proposals championed by Prime Minister Netanyahu’s government. The debate, which dominated Israeli political discourse prior to the October 7 Hamas attacks, centered on efforts by Netanyahu’s coalition to modify the balance of power between the judiciary and the legislature. Critics feared the reforms would weaken democratic checks and balances, while supporters argued they were necessary to curb judicial overreach.

President Joe Biden was among the foreign leaders who weighed in on the controversy. In March 2023, Biden publicly criticized the proposed reforms and appeared to express support for the protest movement.

Fox News Digital quoted Biden’s remarks at the time: “Like many strong supporters of Israel, I’m very concerned. I’m concerned that they get this straight. They cannot continue down this road. I’ve sort of made that clear.”

The Judiciary Committee has highlighted these comments as indicative of the Biden administration’s alignment with groups opposing Netanyahu’s government. In the eyes of congressional investigators, the administration’s rhetoric and alleged financial support to NGOs involved in the protests raise serious questions about foreign influence in the domestic politics of a key U.S. ally.

Despite requests for comment, Fox News Digital reported that four of the six NGOs contacted did not respond to inquiries regarding the committee’s findings. The ongoing silence from these organizations has only fueled further speculation about the extent of their involvement.

The allegations have already sparked fierce political debate in Washington and Jerusalem alike. The potential implications — ranging from violations of U.S. federal grant guidelines to breaches of Israeli sovereignty — are significant.

With congressional investigators signaling that their inquiry is far from over, the revelations brought forward in the memo suggest that the controversy over foreign funding of political activism in Israel will remain a contentious issue in both countries for the foreseeable future.