U.S. Grants $30M to Controversial Gaza Aid Group Despite Violence and Oversight Concerns

WASHINGTON / GAZA CITY —
The United States has approved a $30 million emergency grant for the Gaza Humanitarian Foundation (GHF)—a private aid group operating in war-ravaged Gaza—despite rising concerns over violence near aid distribution sites and the group’s lack of oversight, Reuters has revealed through internal documents and confidential sources.

This marks the first direct U.S. financial contribution to GHF, an organization that had previously received only diplomatic support. The funding, disbursed through the U.S. Agency for International Development (USAID), bypassed traditional transparency safeguards, including standard audits and anti-extremism vetting protocols, according to four U.S. officials familiar with the matter.

The initial $7 million disbursement was authorized under a “priority directive” from the White House and State Department, as part of a broader emergency response to the worsening humanitarian crisis in Gaza.

Such an audit would normally take many, many weeks if not months, said one former senior U.S. official, referring to the typical process for new USAID partners.

Controversy Over Oversight and Security

Sources confirmed that the State Department waived multiple compliance requirements, including the disclosure of GHF’s financials and verification of its independence from armed or extremist groups—standards typically mandatory for Gaza-based operations, where Hamas maintains de facto control.

GHF has partnered with Safe Reach Solutions, a logistics firm led by a former CIA officer, and UG Solutions, a U.S.-based private security contractor that employs armed American military veterans to escort aid convoys and protect sites within Gaza.

Critics within U.S. agencies raised red flags about the organization’s inexperience, use of for-profit military contractors, and the rising death toll near aid drop points. Since Israel partially lifted its 11-week blockade on May 19, more than 400 Palestinians have been killed attempting to access aid, according to UN figures.

The majority of casualties have been shot or shelled trying to reach U.S.-Israeli distribution sites set up in militarized zones, said Jonathan Whittall, senior UN aid official for the Occupied Palestinian Territories.

He added that Israeli forces and armed gangs were both responsible for violence along the aid routes.

GHF Defends Its Role

Despite criticism, GHF says it has already delivered 40 million meals in Gaza without a single truck being looted. In a rare public statement, a spokesperson responded to UN concerns by inviting cooperation instead of criticism.

Our aid is getting securely delivered,” the GHF spokesperson said. “Instead of bickering and throwing insults from the sidelines, we would welcome the UN and other humanitarian groups to join us and feed the people in Gaza.

GHF briefly suspended operations earlier this month following dozens of deaths near its delivery zones, pressing Israeli officials for improved civilian safety guarantees. The group insists its own distribution points remain incident-free.

Broader Implications and Funding Outlook

Two officials told Reuters the $30 million grant may be followed by monthly disbursements of similar scale, depending on operational needs and results. The decision comes amid broader White House efforts to increase humanitarian outreach in Gaza while navigating the volatile political climate surrounding Israel’s military actions.

A prior proposal for a $500 million aid package to GHF—reportedly pushed by Israeli officials during the Trump administration—has yet to materialize.

UN officials have argued that escalating aid militarization and exclusive U.S.-Israel coordination undermine neutrality and increase the risk for civilians.

Aid must be driven by humanitarian needs, not military alliances, said a senior UN coordinator.

So far, neither the White House, State Department, nor Israeli officials have publicly commented on the funding decision. GHF continues to operate in parallel to UN relief efforts in Gaza, amid deepening scrutiny.