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US funding for militarised Gaza aid distribution dodges scrutiny

The Observer

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July 06, 2025

Critics say shadowy $30m operation is 'turning food into a weapon of war', while contractors are accused of firing on a population on the brink of famine, reports Ruth Michaelson

- Ruth Michaelson

US funding for militarised Gaza aid distribution dodges scrutiny

The US government is pouring millions of dollars into a deadly militarised initiative to distribute aid in Gaza without internal oversight, The Observer has found.

In the almost six weeks since a private aid operation called the Gaza Humanitarian Foundation (GHF) launched, the opaque effort to replace UN operations in Gaza, rather than work alongside them, has been at the centre of controversy. Israeli soldiers and armed American contractors have been accused of shooting at crowds of starving people surging towards their distribution centres. Hundreds have been killed and thousands wounded, according to medics and the UN.

While both governments initially disclosed little about the plan, The Observer has found that US government funds were given to the GHF without the standard internal review. This funding has been matched by allocations from the Israeli government, according to two US government sources.

In late June, the US state department announced it would give $30m (£22m) in funding to the GHF, despite a string of controversies since its launch a month earlier. One US government employee said they expected the state department to continue the funding, perhaps even monthly, adding that the $30m figure was provided by the GHF based on "its monthly operational needs".

Two US government sources said the money provided by the state department was complemented by Israeli government funds.

The Israeli government has fiercely denied reports it has funded the GHF, and a spokesperson for the Israeli foreign ministry declined to answer questions about it. Despite these denials, two high-profile Israeli opposition politicians have accused their government of funding the project and the public broadcaster Kan reported last month that the Israeli defence ministry had covertly provided over $200m to the GHF.

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