The United States is considering a $500 million aid package for the newly formed Gaza Humanitarian Foundation (GHF). Despite concerns about the foundation’s operations and political context, officials are moving ahead with discussions.
Sources familiar with the proposal said the US Agency for International Development (USAID) would handle the funding. The agency is currently transitioning into the State Department. If the plan goes ahead, it will reflect a deeper US role in humanitarian support for Gaza.
GHF faces operational setbacks and security risks
Several humanitarian groups, including the United Nations, have criticised GHF. They question its neutrality and say it has struggled to manage aid delivery effectively. Since launching, GHF has opened three distribution hubs in Gaza. However, it had to suspend operations at two of them due to crowding and safety concerns. Meanwhile, multiple senior staff members have resigned.
Clashes near distribution sites have raised further alarm. From 1 to 3 June, over 80 people died and hundreds suffered injuries, according to local hospital staff. Witnesses said Israeli forces were responsible. The Israeli military stated it fired warning shots on two occasions and claimed soldiers targeted people approaching their positions.
In response to the situation, some US officials are calling for more experienced aid organisations to lead operations. They believe established groups could improve coordination and safety. However, Israel is likely to oppose that approach.
Funding and political influence
GHF works with private US logistics and security companies to move aid into Gaza and distribute it. A Reuters report recently revealed that McNally Capital, a private equity firm based in Chicago, has a financial interest in the main contractor involved.
While Israel and the Trump administration deny funding GHF directly, they have encouraged international agencies to partner with it. They argue that previous UN-managed aid was diverted to Hamas. Hamas, in contrast, has denied these claims.
USAID has faced deep cuts. Roughly 80% of its programmes have ended, and many staff members may lose their jobs. Ken Jackson, the acting deputy administrator overseeing the changes, supports the $500 million proposal. According to sources, Israel asked the US to fund GHF for 180 days.
So far, neither the State Department nor GHF has commented on the plan.
