DUBAI: The US State Department’s internal watchdog is investigating the now defunct Gaza Humanitarian Foundation over how it spent millions of dollars in emergency aid allocated for the embattled enclave.
The inquiry, led by the State Department’s Office of Inspector General, is reportedly focused on a $30 million grant awarded to the GHF in June 2025, the Financial Times, the British national daily, reported.
The organization was established with backing from the Donald Trump administration and the Israeli government as an alternative mechanism for aid distribution in Gaza, effectively sidelining UN-led humanitarian efforts.
According to the report, OIG investigators are examining how the funds were allocated and spent, including the sourcing of the money and the pricing of food and logistical services purchased by the GHF through private contractors.
Sources familiar with the matter told the FT that the GHF used State Department funds to procure food and transportation services, with one source claiming the organization paid significantly higher prices for food than previous US-funded operations in the region.
A spokesman for the GHF said the organization was unaware of any investigation and defended its procurement process, claiming most food was sourced locally at reasonable prices. However, the spokesperson acknowledged that transportation costs were exceptionally high due to the challenges of operating in an active war zone.
The State Department’s OIG declined to confirm or deny the existence of an investigation but said it launched an audit earlier this year into US efforts to provide food assistance in Gaza and the occupied West Bank.
The GHF faced criticism shortly after its launch in May 2025 amid concerns over its opaque funding structure and reliance on private military contractors at aid distribution sites.
The group’s executive director and deputy resigned before operations officially began amid growing international criticism of Israel’s blockade on Gaza and worsening humanitarian conditions.
The report also noted that health authorities in Gaza said around 1,000 Palestinians were killed by Israeli fire while attempting to access aid near GHF distribution centers, while UN agencies warned of famine conditions across the territory.
According to the FT, US officials privately expressed confusion over how the GHF operated, particularly after the Trump administration waived several oversight and audit requirements typically imposed on taxpayer-funded humanitarian organizations.
Democratic senators also raised concerns at the time, requesting clarification from Secretary of State Marco Rubio about the mechanisms used to approve the funding and the safeguards that remained in place.
The organization suspended operations in October 2025 and later said it had run out of money, despite claiming it had distributed more than 187 million meals in Gaza, a figure reportedly disputed by some Israeli officials.
