An internal US government analysis released Friday (July 25) found no evidence that the Palestinian militant group Hamas systematically stole US-funded humanitarian aid in Gaza, challenging claims from both Israel and the United States that have been used to justify a controversial new private armed aid effort.
The assessment, completed in late June by the US Agency for International Development (USAID), reviewed 156 reports of stolen or lost aid filed by partner organisations operating in Gaza from October 2023 through May. According to a slide presentation seen by Reuters, the Bureau of Humanitarian Assistance (BHA) found “no reports alleging Hamas” benefited from US-funded aid.
The finding comes amid deepening food insecurity in the Gaza Strip and growing criticism of a new militarised aid group, the Gaza Humanitarian Foundation (GHF), backed by the Trump administration.
DISPUTES FROM STATE DEPARTMENT, ISRAEL
A State Department spokesperson disputed the USAID findings, saying there was video evidence of Hamas looting aid, though no such footage was provided. The spokesperson also accused traditional aid groups of concealing corruption.
White House spokesperson Anna Kelly questioned the legitimacy of the analysis, claiming no State Department official had seen it and suggesting it “was likely produced by a deep state operative” aiming to undermine President Donald Trump’s humanitarian policies.
Two sources told Reuters the findings were shared with USAID’s inspector general and State Department officials involved in Middle East policy.
Israel continues to assert that Hamas steals aid and uses it to control Gaza’s population and enrich itself, often by reselling supplies at inflated prices. The Israeli military told Reuters its claims were based on intelligence reports showing Hamas militants embedded in aid trucks, seizing up to 25 per cent of shipments for fighters or resale.
Hamas has denied the allegations. A Hamas security official said Israel has killed more than 800 Hamas-affiliated guards responsible for protecting aid convoys in coordination with the United Nations. Reuters could not independently verify the claims from either side.
MIXED FINDINGS ON AID THEFT
According to the BHA slides, at least 44 of the 156 incidents of lost or stolen aid were “either directly or indirectly” caused by Israeli military action, including airstrikes or directives for civilians to evacuate areas. Other cases involved Israeli demands that aid groups use unsafe routes, increasing the risk of looting.
Of the remaining incidents, 63 were attributed to unknown actors, 35 to armed groups, 25 to unarmed civilians, 11 to corrupt subcontractors, and five to aid workers themselves. Six incidents involved theft under unknown circumstances. A slide noted, “A review of all 156 incidents found no affiliations with US-designated foreign terrorist organisations,” which includes Hamas.
One slide added that “the majority of incidents could not be definitively attributed to a specific actor,” as thefts often occurred in transit with no identified perpetrators.
The USAID analysis acknowledged a limitation: it could not rule out the possibility that some aid reached administrative officials affiliated with Hamas. However, no cases were found where Hamas was confirmed to have stolen or diverted the aid.
CRITICISM OF GHF AND TRUMP POLICY SHIFT
The report casts new scrutiny on the Gaza Humanitarian Foundation, a private aid group launched with US backing that distributes supplies using armed US military veterans and a for-profit logistics firm run by a former CIA officer. The group has come under fire for bypassing traditional humanitarian structures and facing allegations of using militarised distribution methods.
The United Nations and several major aid organisations have rejected calls to cooperate with GHF, saying its operations violate humanitarian principles of neutrality and impartiality. The UN also estimates that more than 1,000 people have been killed by Israeli forces near GHF’s distribution points.
Although aid groups receiving US funds must vet their staff and subcontractors for ties to designated terrorist groups, the Trump administration waived those requirements in approving US$30 million in funding for GHF last month.
The USAID study was completed shortly before the Trump administration froze all foreign aid and began dismantling the agency, folding its operations into the State Department.
According to a source familiar with the situation, the BHA team lost access to classified systems during this process. That source also said they were not aware of any classified US intelligence reports confirming Hamas aid thefts and that US officials were instead relying on Israeli claims.
