The U.S. is considering a $500 million aid package for the Gaza Humanitarian Foundation, a new entity criticized for mismanagement and deadly aid site violence, as the Biden administration navigates humanitarian needs and political pressure in Gaza.

U.S. Funds Could Deepen Controversial Ties

According to multiple sources and former officials, the funding would come from USAID, now being absorbed into the State Department. If approved, the support would dramatically increase U.S. involvement in the GHF, which has operated amid accusations of bias and mismanagement.

Some officials warn the foundation’s chaotic operations — which rely on private U.S. logistics and security firms — have sparked deadly confrontations. From June 1–3, over 80 Palestinians were reportedly shot dead near GHF aid hubs.

Israel’s Role and Pressure Tactics

Reuters revealed that Israel requested the funds to cover six months of GHF operations. Though both Israel and the Trump administration deny financing GHF, they have pushed the U.N. and NGOs to cooperate with it.

Humanitarian organizations and U.N. officials remain skeptical. They warn of GHF’s opaque funding and lack of operational transparency.

Logistics Firm Tied to Private Equity Interests

The U.S.-based for-profit contractor managing GHF’s aid logistics is linked to McNally Capital, a private equity firm with an economic stake. This arrangement has further drawn criticism over potential profiteering from aid operations in a war zone.

The GHF’s operations have faced repeated interruptions as overwhelmed crowds shut down two of its three distribution hubs.

USAID Dismantled Under “America First” Realignment

The push is being championed by Ken Jackson, acting deputy administrator at USAID, who has overseen much of the agency’s dismantling under Trump’s foreign policy overhaul. Around 80% of USAID programs have been canceled, with large staff layoffs.

Some U.S. officials advocate involving established aid NGOs with experience in Gaza, but Israeli objections may block such inclusion.