Federal oversight investigators are examining how a now-defunct aid organization spent $30 million in taxpayer-funded emergency assistance intended for Gaza civilians, raising questions about accountability in humanitarian spending during one of the region's most acute crises.
The US State Department's Office of Inspector General is investigating the Gaza Humanitarian Foundation and its use of the grant announced last June, according to a Financial Times report citing three people familiar with the inquiry. The organization, which was backed by the United States and Israel to distribute aid in Gaza, has since ceased operations.
Scrutiny Over Pricing and Expenditures
The investigation seeks to determine "what money was spent and how," including "which bucket it came from, and how it was doled out," one source told the Financial Times. Investigators are examining GHF's aid pricing and other services purchased with State Department funds, according to the report.
Two people familiar with GHF's operations said the organization used State Department funding to purchase food and logistics. However, another person said GHF had paid "significantly more for food than the US had previously paid in the region," raising concerns about whether emergency humanitarian dollars were used efficiently to reach vulnerable populations.
A GHF spokesperson, who asked not to be named, said the organization was not aware of the OIG inquiry and that food had been purchased "at reasonable prices." The spokesperson attributed higher costs to transport expenses "due to the nature of the ongoing war" and said GHF was "in the process of developing a plan to reduce transport costs when [Israel's government asked it to suspend operations] in October because of the US-brokered ceasefire."
Congressional Concerns Over Oversight
The Office of Inspector General told the Financial Times that it "does not comment on investigative matters and neither confirms nor denies the existence of an investigation," but noted a February audit of the department's "efforts to provide food assistance to the West Bank and Gaza."
The State Department had drawn from its humanitarian assistance funds for the $30 million grant given to GHF, according to one US official, while urging other countries to provide additional funding for the aid group. In July 2025, several senators asked Secretary of State Marco Rubio to explain why such a large grant was given, what other rules were waived and what GHF's other funding sources were.
"There should be no American taxpayer dollars contributing to this scheme," the senators wrote in a letter to Rubio, reflecting broader concerns about transparency and accountability in emergency aid distribution.
Why This Matters:
This investigation highlights critical questions about oversight of humanitarian assistance at a time when Gaza's civilian population faces severe shortages of food and essential supplies. When emergency aid dollars are spent inefficiently or without proper accountability, fewer resources reach vulnerable families in desperate need. The scrutiny also underscores the importance of robust public oversight mechanisms to ensure taxpayer-funded humanitarian assistance achieves its intended purpose: alleviating human suffering. As conflicts create urgent humanitarian needs, transparent systems for tracking aid spending become essential to maintaining public trust in international assistance programs and ensuring that emergency funds translate into maximum relief for affected populations rather than inflated costs that reduce aid effectiveness.