USAID review raised ‘critical concerns’ over Gaza aid group days before $30 million US grant

Hind Al Soulia - Riyadh - WASHINGTON — An internal government assessment shows USAID officials raised “critical concerns” last month about a key aid group’s ability to protect Palestinians and to deliver them food – just days before the State Department announced $30 million in funding for the organization.

A scathing 14-page document obtained by CNN outlines a litany of problems with a funding application submitted by the Gaza Humanitarian Foundation, a US-backed group established to provide aid following an 11-week Israeli blockade of the Gaza Strip. The United Nations human rights office says that hundreds of Palestinians have since been killed around private aid sites, including those operated by GHF.

The assessment flags a range of concerns, from an overall plan missing “even basic details” to a proposal to potentially distribute powdered baby formula in an area that lacks clean water to prepare it.

A USAID official came to a clear conclusion in the report: “I do not concur with moving forward with GHF given operational and reputational risks and lack of oversight.”

“The application was abysmal... it was sorely lacking real content,” a source familiar with the application told CNN on condition of anonymity because they were not authorized to speak publicly.

Trump administration officials have consistently downplayed and rejected criticisms about GHF. Israel has also disputed media reports, eyewitness and doctor accounts, and Palestinian officials blaming the Israeli military for killing aid-seekers near GHF sites.

A State Department spokesperson said in a statement to CNN Tuesday that the funding for GHF will fulfill “President Trump’s commitment to feed the people of Gaza” and accused critics of engaging in “bureaucratic turf wars.”

“The Department provided emergency support to the Gaza Humanitarian Foundation after determining that it was the only viable way to get aid into Gaza without empowering Hamas,” the spokesperson said. “GHF is a results-focused alternative to a broken aid system, delivering more than 66 million meals to the people of Gaza in just weeks.”

A GHF spokesperson defended the organization’s work in Gaza and described the USAID assessment as normal for a funding application.

“As with any U.S. Government procurement process, questions and requests for clarification from USAID/State are routine,” GHF spokesperson Chapin Fay told CNN in a statement. “We are addressing each question as per regulations and normal procedure and will continue to do so as required.”

The 14-page document outlining USAID’s outstanding questions and concerns was not sent to GHF before the funding was approved, according to another source familiar with the matter who spoke to CNN on the condition of anonymity because they are not officially authorized to speak.

Instead, Secretary of State Marco Rubio and the top political appointee for foreign assistance, Jeremy Lewin, pressed for the approval for U.S. funding to be fast-tracked, the two sources said. It is unclear whether top political leadership read the full 14-page document. One of the sources said USAID staff had voiced concerns internally about working with GHF, especially given the humanitarian principle of ‘do no harm.’

In an internal memo dated June 24 – four days after the date listed on the assessment – a top political appointee at the State Department, Kenneth Jackson, recommended that Lewin “waive the various criteria given the humanitarian and political urgency of GHF’s operations.” Both Lewin and Jackson were initially installed into government roles by the Elon Musk-backed Department of Government Efficiency (DOGE).

The State Department announced the award two days later and sent GHF a document conveying requirements for the funds, including some related to concerns raised by USAID. Tranches of the $30 million award will be released when GHF completes key tasks – including many typically required before funding is approved, like registering in the government system, pre-vetting partners and providing evidence of external audits.

As of last week, the funding had not yet been disbursed, State Department spokesperson Tammy Bruce said.

The previously unreported details in the assessment echo international criticism of GHF’s ability to act as the primary aid distributor to thousands of Gazans living in desperate conditions and highlight how the Trump administration greenlit funding for the group despite career staffers’ concerns.

“Today, Palestinians in Gaza face an impossible choice: starve or risk being shot while trying desperately to reach food to feed their families,” said a joint statement last week from over 240 NGOs calling for an immediate end to GHF’s operation.

GHF has faced significant controversy since it was established. The group’s head resigned before operations began in late May, citing concerns over the organization’s adherence to humanitarian principles.

Amid ongoing reports of deadly violence outside GHF’s four Gaza aid sites, the group in early June submitted a page-and-a-half long request seeking emergency humanitarian funding, according to one of the sources. USAID officials asked GHF to submit more documentation to support the request.

But a more fulsome proposal sent by the group was still “missing several required elements,” according to the USAID assessment, which included dozens of clarification questions and requests for more details.

The internal review found that GHF’s application was missing at least nine elements typically required for an award to be approved.

A three-page long risk planning document lacked detailed explanations on its plans to ensure Palestinians in need would receive aid, the USAID assessment found. The risk management plan “does not provide sufficient information to ensure that aid will reach intended recipients,” it said.

Another brief document meant to detail GHF’s mission did not meet “requirements for Safe and Accountable programming,” the review said.

“GHF must explain how it will Do No Harm,” USAID said in the feedback form, asking the group to provide “specific details” of plans to ensure safety, access, and accountability.

USAID also asked GHF to review its budget to ensure line items correctly added up, and noted “inconsistent” timelines for the project across the application.

According to the proposal, GHF estimated that in the month of June it needed roughly $100 million in operating costs, with the group seeking $30 million of that total from the State Department.

GHF’s proposal also noted a planned expansion from four to eight aid distribution sites across Gaza – but did not include details on where the sites would be located.

“Is GHF able to provide a map indicating where the distribution points will be?” USAID asked in the feedback form. It also questioned how the $30 million in funding would be used for the expansion, noting the budget “does not provide sufficient detail” to assess whether GHF would have adequate staffing for eight sites.

While GHF proposed that it could distribute infant formula, the assessment noted that without following USAID guidelines, formula “is dangerous and can increase infant morbidity and mortality due to contamination from unsafe water and poor preparation practices.”

“Powder milk formula must be prepared with sterilized/boiled water, which is difficult in the current context,” the form said.

It also asked the organization to give details on how it was working to ensure that there were facilities and fuel for people to prepare the food it distributed.

Under normal procedures, the concerns outlined in the assessment would have been relayed to GHF before the funding was approved, the sources told CNN, and the group would have time to reply before a decision was made.

That did not happen. On June 26, the State Department publicly announced the approval of the $30 million in funding and encouraged other countries to contribute.

A former USAID official who spoke on the condition of anonymity out of fear of retaliation said that there is precedent for a quick approval process, but that is typically reserved for trusted partners. Under normal procedural circumstances, GHF would likely not have been funded, the official said.

In an internal State Department memo on June 30, US Ambassador to Israel Mike Huckabee touted the approved award and praised GHF’s operations inside Gaza.

“After monitoring the success of GHF, the Department of State announced a $30 million grant to GHF on June 26 that will enable GHF to continue its critical operations and expand to more distribution sites,” Huckabee wrote.

The memo focused on GHF’s “success” in undermining Hamas, alleging the militant group is stealing aid in Gaza and profiting from sales, though Israel hasn’t presented any evidence publicly to back up the claim.

Trump administration officials defended GHF against growing criticism from human rights groups amid mounting death tolls around the aid sites as starving Palestinians clamor for assistance. Officials have blamed Hamas for the deadly violence and suggested publicly and privately that GHF is the only effective way to get aid into the besieged enclave.

“GHF is a decisive break from a status quo that has enabled corruption and complicity in enabling the continued rule of terrorists,” a State Department spokesperson said in a statement to CNN.

Last week, an Associated Press report found American contractors guarding aid distribution sites in Gaza used live ammunition and stun grenades as Palestinians attempted to access food.

An internal State Department memo outlining coverage of GHF, including negative headlines, was recalled and replaced with a memo only containing positive coverage, another source told CNN.

A State Department official last week suggested the US could provide further funding to GHF, saying that if the organization continues to operate “safely and securely and consistent with sort of the principles that we’ve laid out for them, then we’re happy to invest more in them.” — CNN