Hamas Faces Financial Freefall as Israeli Pressure Mounts and Gaza Unrest Grows

Hamas is staring down one of its toughest financial crises yet, as Israel’s relentless military campaign in Gaza squeezes the group’s resources and stirs rising unrest among locals.

According to recent reports, salaries for many Hamas government workers have been slashed or stopped altogether. Even higher-ups in the organization only received half-pay during Ramadan, a time when generosity is supposed to peak. For fighters who once brought home $200 to $300 a month, paychecks have dried up, a direct result of Israel’s military clampdown and the halt in humanitarian aid after the last ceasefire fell apart.

Dr. Michael Milstein, who heads the Forum for Palestinian Studies at Tel Aviv University, pointed out that although the money crunch is real, Hamas fighters are motivated by much more than cash. "It’s not just about a paycheck," he explained. "Hamas provides families with essentials like food, water, and medical care — a lifeline in battered Gaza." Still, Hamas has survived past financial storms, so this isn’t exactly their first rodeo.

The Israeli Defense Forces have kept up the pressure on the ground, routinely targeting Hamas leaders. The group has reportedly lost thousands of fighters since October 7th, yet somehow still maintains a fighting force roughly the same size — though experience is in short supply, and even children from refugee camps are being pulled into the ranks. As for weapons, Milstein says Hamas has no shortage of RPGs, explosives, and rifles, so don’t expect them to run out of firepower anytime soon.

On the money front, Hamas used to benefit from Qatar’s monthly $15 million cash infusions, amassing a rainy-day fund of about $500 million (mostly stashed in Turkey). But Israel’s tightened blockade has made those funds pretty much unreachable. Now, Hamas is relying more on black-market deals and taxing local merchants to keep the lights on. Political analyst Mkhaimar Abusada, currently at Northwestern University, said, "Hamas has survived external financial pressure for nearly two decades. Black markets and taxes are their bread and butter." But while money isn’t everything, the squeeze is making operations a lot messier.

Meanwhile, the financial strain has started to crack Hamas’ control. Protests have sprung up in Gaza City and elsewhere, initially focused on the war and Israel, but more recently demanding Hamas step aside. Slogans like "Hamas out!" have rung out — a rare sound in Gaza. But the group’s answer has been swift and brutal, with reports of protesters tortured to death. Hamas clearly isn’t in the mood to tolerate dissent, even as the anger simmers.

Milstein notes that these protests lack organization and leadership, meaning they often fizzle out as quickly as they start. Still, it’s a sign of growing frustration — Gazans now direct their fury not just at Israel, but at Hamas too, blaming both for the devastation since October 7th.

Adding to the turmoil, hundreds of Palestinians with dual citizenship are reportedly leaving Gaza for Europe via Ramon Airport, part of an Israeli plan to encourage relocation. Yet, for most Gazans, leaving isn’t a real option. As Abusada put it, "Destruction of homes, schools, hospitals, and basic needs has pushed many to flee, but Europe isn’t exactly rolling out the welcome mat." Most departures involve those with dual nationality or residency abroad, and living in a war zone for over a year and a half has left people desperate for an escape.