USAID Analysis Rejects Israeli Claims Of Massive Loot Of Gaza Aid By Hamas

Last Updated:July 26, 2025, 14:30 IST

A USAID analysis found no evidence of Hamas systematically stealing US-funded humanitarian supplies, contradicting claims by Israel.

USAID Analysis Rejects Israeli Claims Of Massive Loot Of Gaza Aid By Hamas (Reuters)

An internal US government analysis has found no evidence of systematic theft by the Palestinian militant group Hamas of US-funded humanitarian supplies, contradicting the primary justification given by Israel and the US for supporting a new armed private aid operation.

This analysis, conducted by a bureau within the US Agency for International Development (USAID) and completed in late June, reviewed 156 incidents of theft or loss of U.S.-funded supplies reported by US aid partner organizations between October 2023 and May 2024. According to a slide presentation of the findings seen by Reuters, it found “no reports alleging Hamas" benefited from US-funded supplies.

A State Department spokesperson disputed these findings, claiming there is video evidence of Hamas looting aid but did not provide any such videos. The spokesperson also accused traditional humanitarian groups of covering up “aid corruption."

White House spokesperson Anna Kelly questioned the existence of the analysis, stating that no State Department official had seen it and suggesting it “was likely produced by a deep state operative" aiming to discredit President Donald Trump’s “humanitarian agenda."

Sources familiar with the matter said the findings were shared with USAID’s inspector general’s office and State Department officials involved in Middle East policy. This comes amid deepening food shortages in the devastated Gaza enclave.

Israel maintains it is committed to allowing aid into Gaza but insists on controlling it to prevent it from being stolen by Hamas, which it blames for the crisis.

The U.N. World Food Program reports that nearly a quarter of Gaza’s 2.1 million Palestinians face famine-like conditions, with thousands suffering acute malnutrition. The World Health Organization and doctors in Gaza report starvation deaths among children and others.

The U.N. estimates that Israeli forces have killed more than 1,000 people seeking food supplies, mostly near militarized distribution sites of the Gaza Humanitarian Foundation (GHF), a new private aid group using a for-profit U.S. logistics firm run by a former CIA officer and armed U.S. military veterans.

The study by USAID’s Bureau of Humanitarian Assistance (BHA) was the largest funder of assistance to Gaza before the Trump administration froze all U.S. foreign aid in January. The Trump administration has also started dismantling USAID, folding its functions into the State Department.

The analysis found that at least 44 of the 156 incidents where aid supplies were reported stolen or lost were “either directly or indirectly" due to Israeli military actions. Israel’s military did not respond to questions about these findings.

The study noted a limitation: because Palestinians receiving aid cannot be vetted, it was possible that U.S.-funded supplies went to administrative officials of Hamas, the Islamist rulers of Gaza. A source familiar with the study cautioned that the absence of reports of widespread aid diversion by Hamas “does not mean that diversion has not occurred."

The Gaza conflict began after Hamas attacked Israel in October 2023, killing 1,200 people and capturing 251 hostages, according to Israeli sources. Palestinian health officials report nearly 60,000 Palestinians have been killed since the Israeli assault began.

Israel, which controls access to Gaza, asserts that Hamas steals food supplies from U.N. and other organizations to control the civilian population and boost its finances by reselling goods at inflated prices. The Israeli military claims its allegations are based on intelligence reports showing Hamas militants seizing aid cargoes by embedding themselves on aid trucks, diverting up to 25% of supplies for their fighters or selling them to civilians.

Hamas denies these allegations, stating that Israel has killed more than 800 Hamas-affiliated police and security guards trying to protect aid vehicles and convoy routes, missions coordinated with the U.N. Reuters could not independently verify claims from either side.

GHF also accuses Hamas of massive aid theft in defending its distribution model. The U.N. and other groups reject calls by GHF, Israel, and the U.S. to cooperate with the foundation, citing violations of international humanitarian principles of neutrality.

The 156 reports of theft or losses of supplies reviewed by BHA were filed by U.N. agencies and other humanitarian groups as a condition of receiving U.S. aid funds. After receiving these reports, USAID staff followed up with partner organizations to determine if Hamas was involved and would redirect or pause aid distributions if Hamas was nearby.

Aid organizations working in Gaza must vet their personnel, sub-contractors, and suppliers for ties to extremist groups before receiving U.S. funds, a condition waived by the State Department in approving $30 million for GHF last month.

According to the slide presentation, USAID partners tend to over-report aid diversion and theft by groups designated by the U.S. as foreign terrorist organizations to avoid losing U.S. funding.

Of the 156 incidents, 63 were attributed to unknown perpetrators, 35 to armed actors, 25 to unarmed people, 11 directly to Israeli military action, 11 to corrupt subcontractors, five to aid group personnel engaging in corrupt activities, and six to others, categorised as commodities stolen in unknown circumstances.

The armed actors included gangs and other individuals with weapons. A review of all 156 incidents found no affiliations with U.S.-designated foreign terrorist organizations, including Hamas.

Most incidents could not be definitively attributed to a specific actor, as partners often discovered the commodities had been stolen in transit without identifying the perpetrator.

While there could be classified intelligence reports on Hamas aid thefts, BHA staff lost access to classified systems during USAID’s dismantlement. A source familiar with U.S. intelligence assessments said they knew of no U.S. intelligence reports detailing Hamas aid diversions, with Washington relying on Israeli reports.

The BHA analysis concluded that the Israeli military “directly or indirectly caused" 44 incidents of lost or stolen U.S.-funded aid. This included 11 incidents attributed to direct Israeli military actions, such as airstrikes or evacuation orders. Indirect losses included cases where the military compelled aid groups to use high-risk delivery routes, ignoring requests for safer alternatives.

Location :

Washington D.C., United States of America (USA)

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