A newly revealed internal review by the U.S. Agency for International Development (USAID) has found no evidence that Hamas has systematically stolen U.S.-funded humanitarian aid in Gaza, undercutting a key justification used by the State Department and Israeli government to support a controversial private aid group operating in the region.
The report, completed in late June and first detailed by Reuters and CNN, examined 156 reports of theft, fraud, or abuse of U.S. aid between October 2023 and May 2025. According to a presentation of the findings, less than one percent of aid was affected by loss, theft, or diversion. Most incidents were isolated, with no clear evidence linking any of them to Hamas or any U.S.-designated terrorist organization.
Aid Loss Was Minimal, Not Systemic
A source familiar with the analysis stated, “There was no indication that there was a systemic loss due to Hamas interference or theft or diversion.” The report further clarified that while some supplies were stolen or lost, perpetrators in most cases could not be identified. Much of the diversion occurred in transit, and partners frequently couldn’t determine who was responsible.
While USAID does not vet individual recipients of aid, analysts noted that Gaza’s civilian population includes government workers and their families who may incidentally receive aid, but these individuals are not considered armed factions or militants.
State Department Pushes Back
Despite the USAID report, the State Department maintains its stance. Deputy spokesperson Tommy Pigott said that the private Gaza Humanitarian Foundation (GHF) remains the most secure way to deliver aid without Hamas interference. He added that “endless video evidence” and intelligence reports show Hamas looting non-GHF aid deliveries — though no specific evidence was provided to back that claim.
The State Department has accused traditional aid organizations and the U.N. of covering up aid corruption. Still, they acknowledged the situation in Gaza remains dire and that evaluations of aid distribution will continue.
Israeli Role in Aid Disruption
One of the most striking findings of the USAID analysis is that the Israel Defense Forces (IDF) were directly or indirectly responsible for the loss of U.S. aid in about 28% of all documented incidents. These losses were often due to Israeli airstrikes, forced evacuations, or rerouting aid convoys through high-risk areas, despite partner organizations requesting safer alternatives.
The report cites several cases where looting occurred after the IDF instructed convoys to follow certain routes known for instability or risk of theft. Aid groups said they had coordinated closely with Israeli authorities, but their requests to take safer paths were denied.
IDF Dismisses the Report
In response, the IDF rejected the USAID findings, calling the report biased. It accused USAID of “failing to hold Hamas accountable” and defending its routing decisions as based on operational intelligence and aimed at protecting humanitarian convoys. It said the suggestion that IDF coordination contributed to aid losses was unfair and misinformed.
Ongoing Investigations and Tensions
USAID’s Inspector General acknowledged ongoing investigations into the Gaza aid pipeline and warned of risks involving Hamas or other extremist groups. However, no conclusive evidence has been found linking the aid losses to such organizations.
Additionally, the inspector general’s office is also probing claims that some U.N. staff may have participated in the October 7 Hamas attacks, though those investigations are separate from the aid diversion analysis.
Aid Amid a Crisis
The humanitarian crisis in Gaza continues to worsen. Over 1,000 civilians have been killed by Israeli forces while seeking aid, with 60% of those deaths occurring near GHF distribution points, according to the Palestinian Health Ministry and U.N. reports. Malnutrition is spreading, and reports of starvation-related deaths are increasing.
Humanitarian groups continue to criticize GHF’s militarized aid distribution model. GHF, meanwhile, maintains that its operations are the most secure and effective method of delivering aid, free from Hamas interference.
As debate continues in Washington and Jerusalem over how best to deliver aid, the USAID report has added a new layer of complexity, challenging the narrative that Hamas is the primary reason for Gaza’s deepening humanitarian crisis.
FAQs
Did USAID find Hamas stole aid?
No, the review found no evidence of systemic Hamas theft.
What percent of aid was lost?
Less than one percent was lost to theft or diversion.
Who caused most aid disruptions?
IDF was linked to 28% of aid loss incidents.
Is the GHF delivering all aid?
GHF is a new private group supported by U.S. and Israel.
Was the USAID report shared widely?
It was presented internally but may not have reached top State officials.
