The anonymous sources and former officials indicated that funding for the Gaza Humanitarian Foundation (GHF) would originate from the US Agency for International Development (USAID), which is being incorporated into the US State Department.
The proposal has faced pushback from some US officials who are concerned about the recent deadly shootings of Palestinians near aid distribution centers and the effectiveness of the GHF, the sources noted.
The GHF has come under heavy scrutiny from humanitarian organizations, including the United Nations, for an alleged lack of impartiality, and began distributing aid last week amid dire warnings that the majority of Gaza’s 2.3 million residents are facing famine following an 11-week Israeli blockade, which was lifted on May 19 to allow limited deliveries.
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This foundation has witnessed the resignation of senior staff and had to halt distributions twice during the week due to overwhelming crowds at its distribution points.
Neither the State Department nor the GHF responded promptly to requests for comments.
Reuters has been unable to determine who is currently financing the GHF’s operations, which commenced in Gaza last week. The GHF utilizes private US security and logistics firms to deliver aid to designated secure distribution sites in Gaza.
On Thursday, June 6, Reuters reported that a Chicago-based private equity firm, McNally Capital, has an “economic interest” in the for-profit US contractor managing logistics and security for GHF’s distribution hubs in the region.
While US President Donald Trump’s administration and Israel assert that they do not fund the GHF operation, both have been urging the United Nations and international aid organizations to collaborate with it.
The US and Israel claim that aid provided through a well-established U.N. network was misappropriated by Hamas, which has denied these allegations.
USAID has undergone significant reductions, with around 80% of its programs discontinued and staff facing layoffs as part of President Donald Trump’s initiative to realign U.S. foreign policy with his “America First” agenda.
One knowledgeable source and a former senior official revealed that the proposal to allocate $500 million to GHF has been promoted by acting deputy USAID Administrator Ken Jackson, who has overseen the agency’s reduction.
The source mentioned that Israel has requested the funds to support GHF’s operations for a period of 180 days.
The Israeli government did not quickly respond to a request for comment.
Some U.S. officials expressed reservations about the proposal due to the overcrowding affecting GHF’s distribution hubs and nearby violence.
These officials also advocate for the involvement of established non-governmental organizations experienced in handling aid operations in Gaza and elsewhere, should the State Department approve the funds for GHF, which is a stance likely to be opposed by Israel, according to the sources.
Gaza hospital officials reported that over 80 individuals were killed and hundreds injured near GHF distribution points from June 1-3.
Since launching its operations, the GHF has established three hubs, but only two have been operational in the past two days.
Witnesses blamed Israeli soldiers for the fatalities, while the Israeli military stated that it fired warning shots on two occasions, claiming that soldiers shot at Palestinian “suspects” advancing toward their positions on Tuesday, June 3.
