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US Mulls Giving Millions to Controversial Gaza Aid Foundation, Sources Say
Palestinians carry aid supplies which they received from the US-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025. Photo: REUTERS/Ramadan Abed/File Photo
The State Department is weighing giving $500 million to the new foundation providing aid to war-shattered Gaza, according to two knowledgeable sources and two former US officials, a move that would involve the US more deeply in a controversial aid effort that has been beset by violence and chaos.
The sources and former US officials, all of whom requested anonymity because of the sensitivity of the matter, said that money for Gaza Humanitarian Foundation (GHF) would come from the US Agency for International Development (USAID), which is being folded into the US State Department.
The plan has met resistance from some US officials concerned with the deadly shootings of Palestinians near aid distribution sites and the competence of the GHF, the two sources said.
The GHF, which has been fiercely criticized by humanitarian organizations, including the United Nations, for an alleged lack of neutrality, began distributing aid last week amid warnings that most of Gaza’s 2.3 million population is at risk of famine after an 11-week Israeli aid blockade, which was lifted on May 19 when limited deliveries were allowed to resume.
The foundation has seen senior personnel quit and had to pause handouts twice this week after crowds overwhelmed its distribution hubs.
The State Department and GHF did not immediately respond to requests for comment.
Reuters has been unable to establish who is currently funding the GHF operations, which began in Gaza last week. The GHF uses private US security and logistics companies to transport aid into Gaza for distribution at so-called secure distribution sites.
On Thursday, Reuters reported that a Chicago-based private equity firm, McNally Capital, has an “economic interest” in the for-profit US contractor overseeing the logistics and security of GHF’s aid distribution hubs in the enclave.
While US President Donald Trump’s administration and Israel say they don’t finance the GHF operation, both have been pressing the United Nations and international aid groups to work with it.
The US and Israel argue that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that.
USAID has been all but dismantled. Some 80 percent of its programs have been canceled and its staff face termination as part of President Donald Trump’s drive to align US foreign policy with his “America First” agenda.
One source with knowledge of the matter and one former senior official said the proposal to give the $500 million to GHF has been championed by acting deputy USAID Administrator Ken Jackson, who has helped oversee the agency’s dismemberment.
The source said that Israel requested the funds to underwrite GHF’s operations for 180 days.
The Israeli government did not immediately respond to a request for comment.
The two sources said that some US officials have concerns with the plan because of the overcrowding that has affected the aid distribution hubs run by GHF’s contractor, and violence nearby.
Those officials also want well-established non-governmental organizations experienced in running aid operations in Gaza and elsewhere to be involved in the operation if the State Department approves the funds for GHF, a position that Israel likely will oppose, the sources said.
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Ritchie Torres Says Netanyahu Has Done ‘Irreparable’ Harm to Democratic Party Relationship With Israel
US Rep. Ritchie Torres (D-NY) standing at the US Capitol in February of 2023. Photo: Michael Brochstein/Sipa USA via Reuters Connect
Rep. Ritchie Torres (D-NY), one of Israel’s most vocal supporters in Congress, delivered pointed criticism of Israeli Prime Minister Benjamin Netanyahu on Sunday, saying the longtime leader has “done harm” to Israel’s relationship with the Democratic Party and called for an end to the war in Gaza.
“If you’re a Democrat, and if you’re a Democrat of color and if you’re a Black Democrat, you take immense pride in Barack Obama. He represents one of the greatest achievements in politics. We take great pride in his presidency,” Torres said in an interview with . “To see a foreign leader visibly disrespect him in the manner that Bibi Netanyahu did, I feel did irreparable damage to the relationship with the Democratic Party.”
Torres offered a gloomy assessment of Netanyahu’s relationship with the Democratic party, arguing that “the damage may be irreparable.” He also cautioned that support for the Jewish state is rapidly “eroding” according to various polls.
Furthermore, Torres stated that despite his strident support for Israel, he does not “consider myself having a good relationship with the Israeli government.”
Torres said that Netanyahu “made a terrible mistake” in establishing a cozy relationship with President Donald Trump and the Republican Party, arguing that the Israeli premier politicized the US-Israel relationship. The progressive lawmaker said that there is a “legitimate perception that the present Israeli government is just aligned with the Republican Party.”
The remarks represent a notable shift from Torres, a New York Democrat who has historically defended Israel amid bipartisan divisions over the war. While maintaining his commitment to Israel’s security, Torres said Netanyahu’s government has failed to articulate a clear endgame in Gaza and warned that the ongoing military campaign is undermining both humanitarian values and strategic interests.
“There’s a real need to end the war, secure the release of the hostages, bring humanitarian assistance to Palestinians in distress.”
Torres cited prominent Israeli journalists and media figures that have warned that Gaza has approached “catastrophic” levels of hunger and that famine might be looming without a rapid policy shift.
Torres’s comments come amid growing pressure from the Democratic base on centrist and progressive Democrats alike to take a firmer stance on Israel’s military operations, which have resulted in the deaths of more than 50,000 Palestinians, according to the Hamas-run Gaza Health Ministry. Israel launched its campaign following the October 7 Hamas attack that killed approximately 1,200 people and took over 200 hostages, according to Israeli officials.
Torres’s comments underscore a growing divide within the Democratic Party over the U.S.-Israel relationship. While the party remains broadly supportive of Israel’s right to defend itself, a significant faction ,including Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) condemned the war in Gaza and called for a suspension of U.S. military aid to Israel.
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Israeli Defense Firm Lands Huge Deal With Germany
An Elbit Systems Ltd. Hermes 900 unmanned aerial vehicle (UAV) is seen at Elbit’s drone factory in Rehovot, Israel, June 28, 2018. Photo: REUTERS/Orel Cohen
On Monday, Elbit Systems Ltd., a military contractor based in Israel, announced it had received a $260 million government contract from Germany to spend six years installing Directional Infrared Counter Measures (DIRCM) self-protection systems for defending Germany’s A400M aircraft fleet.
The contract is just the latest in a string of blockbuster deals between Israeli defense firms and international militaries. Israeli defense exports to Europe jumped to 54% of overall defense exports last year, up from just over 33% in 2023, according to the Israeli media outlet Globes.
Elbit’s defense system works to counter infrared-guided missiles, with a focus on mobile anti-aircraft weapons. It offers the ability to track missile threats as they happen and also provides automatic protection without needed human action.
Other countries which have deployed the system include Israel, Germany, the Netherlands, Italy and Brazil. In February, Morocco announced plans to purchase 36 Atmos 2000 self-propelled artillery systems from Elbit, making Israel the country’s third largest weapons supplier.
“This contract further strengthens Elbit Systems’ position as a leading global provider of DIRCM solutions,” Elbit president and CEO Bezhalel Machlis said. “Our systems are already trusted by numerous air forces and defense organizations around the world, and we are proud to support Germany in enhancing the protection of their strategic air assets. Our successful collaboration with Airbus DS on this important program is highly valued, and we are pleased that our advanced self-protection systems will contribute to the safety and operational readiness of the German A400M fleet.”
The announcement prompted Elbit’s share price to jump 1 percent on the Tel Aviv Stock Exchange (TASE).
Since Israel’s 12-day war against Iran, Israel’s financial markets have been buoyed by significant foreign investment and renewed investor confidence. Over the past year, the TASE has repeatedly broken past its all-time highs, despite Israel’s multi-front wars.
On Friday, Germany announced that it would not join France in recognizing a Palestinian state. A government spokesperson said “Israel’s security is of paramount importance to the German government” and that “the German government therefore has no plans to recognize a Palestinian state in the short term.”
On Monday, German Chancellor Friedrich Merz stated that the country had no plans to sanction Israel and that “for now, we want to await the foreign minister’s trip and the talks that will be held with the Israeli government in the coming days.”
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Israel Says Brazil’s Exit From IHRA Shows ‘a Profound Moral Failure’
Brazil’s President Luiz Inacio Lula da Silva reacts after meeting with Brazilian citizens, who were repatriated from the Gaza Strip, upon arrival at the Air Force base of Brasilia, Brazil, Nov. 13, 2023. Photo: REUTERS/Ueslei Marcelino
The Brazilian government has not yet confirmed its reported decision to withdraw from the International Holocaust Remembrance Alliance (IHRA), however both Brazilian media and the Jewish state have have done so.
On Thursday, Israel’s Foreign Ministry stated on X that “Brazil’s decision to join the legal offensive against Israel at the ICJ [International Court of Justice] while withdrawing from the IHRA, is a demonstration of a profound moral failure. At a time when Israel is fighting for its very existence, turning against the Jewish state and abandoning the global consensus against antisemitism is both reckless and shameful.”
On Wednesday, reports emerged of Brazil’s plans to join South Africa in charging Israel with genocide at the International Court of Justice (ICJ). South Africa has argued the case against Israel since December 2023.
The Combat Antisemitism Movement’s Shay Salamon, Director of Hispanic Affairs, condemned Brazil’s withdrawal from IHRA in a Friday statement.
“The Brazilian government’s move is not only irresponsible, but also deeply alarming at a time of rising antisemitism worldwide,” Salamon said. “Denying the importance of the International Holocaust Remembrance Alliance (IHRA) and abandoning its Working Definition of Antisemitism minimizes the Holocaust and disregards the history of a people who have been victimized by hatred for ages.”
Salamon stated that “Brazil is home to the second-largest Jewish community in Latin America, including many descendants of Holocaust survivors, and Brazilian President Luiz Inácio Lula da Silva has now turned his back on them. This decision, on top of his constant attacks on Israel, further confirms what was already clear — President Lula has normalized antisemitism in his official discourse. His approach represents neither neutrality nor diplomacy — rather, it’s complicity.”
Fernando Lottenberg, who serves as Organization of American States (OAS) Commissioner for Monitoring and Combating Anti-Semitism, offered his analysis of Lula’s move in a thread of posts on X, saying that “this is a step in the wrong direction.”
“Although Brazil has not adopted the [IHRA antisemitism] definition nationally, it has been adopted in 12 Brazilian states so far, as well as in the cities of Rio de Janeiro and São Paulo,” Lottenberg wrote. “The IHRA’s working definition of antisemitism is an important tool that, although not legally binding, has been adopted by more than 45 countries and 2,000 institutions around the world to help inform, identify, and combat antisemitism.”
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