US State Department considers $500 million grant to Gaza Humanitarian Foundation

US State Department considers $500 million grant to Gaza Humanitarian Foundation

The U.S. State Department is weighing a significant financial decision that could impact its involvement in the Gaza aid effort. According to Reuters [1], the department is considering a $500 million grant to the Gaza Humanitarian Foundation (GHF), a move that would increase U.S. engagement in a controversial aid initiative. The proposal, championed by acting deputy USAID Administrator Ken Jackson, aims to fund GHF's operations for 180 days [1].

The GHF, which began distributing aid in Gaza last week, has faced criticism for alleged neutrality issues and operational inefficiencies. The foundation has seen senior personnel resign and had to pause aid distribution due to overcrowding and violence [1]. Concerns have been raised about the safety of aid distribution sites, with over 80 people shot dead and hundreds wounded near GHF's distribution points between June 1-3 [1].

The Israeli government has requested the funds to support GHF's operations, with some U.S. officials expressing reservations about the plan due to the violence and the competence of the GHF. These officials also advocate for the involvement of well-established non-governmental organizations experienced in running aid operations in Gaza [1].

The decision to grant the $500 million to GHF is part of a broader shift in U.S. foreign policy under President Donald Trump, who has been pushing for a more "America First" agenda. USAID, which has been significantly dismantled under Trump's administration, is being folded into the State Department, potentially altering the agency's operational dynamics [1].

The proposed grant highlights the complex and contentious nature of the Gaza aid situation, with both the U.S. and Israel arguing that traditional aid networks have been compromised. The GHF's operations, however, have been criticized for their handling of aid distribution and the security situation in Gaza.

The final decision on the $500 million grant remains uncertain, with the State Department and GHF yet to respond to requests for comment. The proposal underscores the delicate balance between humanitarian aid and political considerations in the ongoing conflict in Gaza.

References:
[1] Reuters. "At Israel’s request, US mulls giving $500M to fund Gaza aid group’s operations." Times of Israel. June 7, 2025. https://www.timesofisrael.com/liveblog-june-07-2025/