Of course the money will fund terror. What did they think it was for - humanitarian aid?
The State Department idea that aid to Hamas can be "redirected" is absurd. The Clinton administration tried to "crack-down" on Islamic charities supporting Hamas and backed-off for fear of being labeled bigoted. The charities supported by Yassir Arafat were corrupted; the charities dominated by Shaykh Yassin were under Hamas control and did as they were ordered. In sum, if you want to throw money into the snake pit don't complain when your bitten.