An internal US government review found no evidence of widespread theft by Hamas of US-funded humanitarian aid in Gaza, contradicting the State Department’s claims that were used to justify backing a controversial private organization that took over aid distribution in the enclave. The analysis, conducted by the US Agency for International Development (USAID), looked into 156 incidents of waste, fraud, and abuse reported by partner organizations between October 2023 and May 2025. The review of the incidents, which was first reported by Reuters, “found no affiliations” with sanctioned groups or foreign terrorist organizations, according to a presentation seen by CNN. “There was no indication that there was a systemic loss due to Hamas interference or theft or diversion,” a source familiar with the report told CNN. The Trump administration has repeatedly claimed there is widespread theft of humanitarian aid by Hamas. They have said that only the Gaza Humanitarian Fund (GHF), a private US and Israel-backed organization, is able to distribute assistance to the besieged enclave without such theft occurring. “We want to see as much aid getting into Gaza as possible in a way that is not being looted by Hamas, and this mechanism, the Gaza Humanitarian Foundation, has been a way to do that,” State Department deputy spokesperson Tommy Pigott said Thursday. “We’re calling for additional support of that foundation to deliver that aid.”
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The USAID findings were presented to officials working in the State Department’s Middle East bureau, as well as people working on humanitarian aid and the USAID Office of the Inspector General. USAID ceased operations on July 1 and some of its work was transferred to the State Department. However, the USAID watchdog remains operational. It is unclear if the findings have been relayed to State Department leadership. More than 1,000 people have been killed by Israeli forces while seeking aid, according to the Palestinian Health Ministry and the United Nations, with 60% killed while trying to reach GHF sites. Thousands are suffering from malnutrition and more than a dozen people have starved to death this week amid ongoing Israeli restrictions on aid. A State Department spokesperson claimed there is “endless video evidence of Hamas looting” and “intelligence” showing that “a significant portion of non-GHF aid trucks have been diverted, looted, stolen, or ‘self-distributed.’” The spokesperson did not provide examples of the video evidence. They also accused aid workers of lying about looting “in a poor attempt at an aid corruption coverup.” “As the situation on the ground develops, we will continue to assess the most effective way to deliver aid to the people of Gaza,” the spokesperson said.
