The US State Department’s Office of Inspector General (OIG) actively investigates the now-defunct Gaza Humanitarian Foundation (GHF) regarding its use of emergency aid for Gaza. Specifically, the inquiry focuses on a $30 million grant the State Department awarded to GHF in June 2025, according to the Financial Times.
Investigators examine how GHF allocated funds, sourced money, and priced food and logistics obtained through private contractors. Sources familiar with the matter told the FT that GHF used State Department funds for food and transportation. One source claimed the organization paid significantly higher prices for food than previous US-funded operations in the region.
However, a GHF spokesman stated the organization “was unaware of any investigation.” He defended its procurement process, asserting GHF “sourced most food locally at reasonable prices.” Yet, he acknowledged “transportation costs were exceptionally high due to the challenges of operating in an active war zone.”
The OIG declined to confirm or deny the investigation. But it stated it launched an audit earlier this year into US food assistance efforts in Gaza and the occupied West Bank.
Criticism and Operational Challenges Mount
After its May 2025 launch, GHF faced criticism centered on its opaque funding structure and reliance on private military contractors at aid sites. Consequently, the group’s executive director and deputy resigned before operations began amid growing international criticism of Israel’s blockade and worsening humanitarian conditions.
Moreover, Gaza health authorities reported Israeli fire killed around 1,000 Palestinians while they accessed aid near GHF centers. Meanwhile, UN agencies warned of famine conditions across the territory.
Additionally, US officials privately expressed confusion over GHF’s operations. This followed the Trump administration’s waiver of oversight requirements typically imposed on taxpayer-funded humanitarian groups. Democratic senators also raised concerns, requesting clarification from Secretary of State Marco Rubio about funding safeguards.
Finally, GHF suspended operations in October 2025. It later said it had run out of money. However, it claimed to have distributed more than 187 million meals in Gaza, a figure some Israeli officials disputed.
