Following the Obama administration's announcement Friday's announcement to freeze funding to international aid groups in the Hamas-controlled Gaza Strip, an administration official said Sunday the issue had been resolved and funding would continue.
According to the official, the administration "paused" the monies when Hamas ignored a 48-hour deadline to turn over books for auditing, The Associated Press reported.
Hamas' demand to audit the books of international aid groups would have required contact with Hamas, which is forbidden because it is listed as a terror group by the U.S. and E.U.
According to the report, the U.S. called Hamas' demand to conduct searches of international aid groups and do its own audit "unprecedented."
Mohammed Awad, Hamas minister of planning, said the International Medical Corps' Gaza office agreed to an independent audit of its books.
In the past, international aid groups operating in the Gaza Strip have been concerned that Hamas would like to take control of their organizations and the funding they receive from countries like the United States.
AP contributed to this report.