Exclusive-US mulls giving millions to controversial Gaza aid foundation, sources say
By Jonathan Landay
WASHINGTON (Reuters) -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 U.S. officials, a move that would involve the U.S. more deeply in a controversial aid effort that has been beset by violence and chaos.
The sources and former U.S. 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 U.S. Agency for International Development (USAID), which is being folded into the U.S. State Department.
The plan has met resistance from some U.S. 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 U.S. 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 U.S. contractor overseeing the logistics and security of GHF's aid distribution hubs in the enclave.
While U.S. 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 U.S. 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 U.S. 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 U.S. 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.
Gaza hospital officials have said more than 80 people had been shot dead and hundreds wounded near GHF's distribution points between June 1-3.
Since launching its operation, the GHF has opened three hubs, but over the past two days, only two of them have been functioning.
Witnesses blamed Israeli soldiers for the killings. The Israeli military said it fired warning shots on two days, while on Tuesday it said soldiers had fired at Palestinian "suspects" advancing towards their positions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Los Angeles Times
34 minutes ago
- Los Angeles Times
Israel backs anti-Hamas militia known for looting aid in Gaza. Here's what we know
JERUSALEM — Israel is supporting armed groups of Palestinians in Gaza in what it says is a move to counter Hamas. But officials from the U.N. and aid organizations say the military is allowing them to loot food and other supplies from their trucks. One self-styled militia that calls itself the Popular Forces, led by Yasser Abu Shabab, says it is guarding newly created, Israeli-backed food distribution centers in southern Gaza. Aid workers say it has a long history of looting U.N. trucks. Gaza's armed groups have ties to powerful clans or extended families and often operate as criminal gangs. Aid workers allege Israel's backing of the groups is part of a wider effort to control all aid operations in the strip. Israel denies allowing looters to operate in areas it controls. Here's what we know about anti-Hamas armed groups in Gaza: Prime Minister Benjamin Netanyahu said in a social media video Thursday that Israel had 'activated' clans in Gaza to oppose Hamas. He didn't elaborate how Israel is supporting them or what role Israel wants them to play. Netanyahu's comments were in response to a political opponent accusing him of arming 'crime families' in Gaza. Clans, tribes and extended families have strong influence in Gaza, where their leaders often help mediate disputes. Some have long been armed to protect their group's interests, and some have morphed into gangs involved in smuggling drugs or running protection rackets. After seizing power in 2007, Hamas clamped down on Gaza's gangs — sometimes with brute force and sometimes by steering perks their way. But with Hamas' weakening power after 20 months of war with Israel, gangs have regained freedom to act. The leadership of a number of clans — including the clan from which the Abu Shabab group's members hail — have issued statements denouncing looting and cooperation with Israel. Besides the Abu Shabab group, it is not known how many armed groups Israel is supporting. The Abu Shabab group went public in early May, declaring itself a 'nationalist force.' It said it was protecting aid, including around the food distribution hubs run by the Gaza Humanitarian Foundation, a mainly American private contractor that Israel intends to replace the U.N.-led aid network. Aid workers and Palestinians who know the group estimate it has several hundred fighters. The Abu Shabab group's media office told the Associated Press it was collaborating with GHF 'to ensure that the food and medicine reaches its beneficiaries.' It said it was not involved in distribution, but that its fighters secured the surroundings of distribution centers run by GHF inside military-controlled zones in the Rafah area. A spokesperson with GHF said it had 'no collaboration' with Abu Shabab. 'We do have local Palestinian workers we are very proud of, but none is armed, and they do not belong to Abu Shabab's organization,' the spokesperson said, speaking on condition of anonymity in accordance with the group's rules. Before the war, Yasser Abu Shabab was involved in smuggling cigarettes and drugs from Egypt and Israel into Gaza through crossings and tunnels, according to two members of his extended family, one of whom was once part of his group. Hamas arrested Abu Shabab but freed him from prison along with most other inmates when the war began in October 2023, they said, speaking on condition of anonymity for fear of reprisals. Abu Shabab's media office said he was summoned by police before the war but wasn't officially accused or tried. It also said claims the group was involved in attacking aid trucks were 'exaggerated,' saying its fighters 'took the minimum amount of food and water necessary.' The head of the association in Gaza that provides trucks and drivers for aid groups said their members' vehicles have been attacked many times by Abu Shabab's fighters. Nahed Sheheiber said the group has been active in Israeli-controlled eastern parts of Rafah and Khan Younis, targeting trucks as they enter Gaza from the Kerem Shalom crossing with Israel. Troops nearby 'did nothing' to stop attacks, he said. Sheheiber said that when Hamas police officers have tried to confront gangs or guard truck convoys, they were attacked by Israeli troops. One driver, Issam Abu Awda, said he was attacked by Abu Shabab fighters last July. The fighters stopped his truck, blindfolded and handcuffed him and his assistant, then loaded the supplies off the vehicle, he said. Abu Awda said nearby Israeli troops didn't intervene. These kinds of attacks are still happening and highlight 'a disturbing pattern,' according to Jonathan Whittall, from the U.N. humanitarian coordinator, OCHA. 'Those who have blocked and violently ransacked aid trucks seem to have been protected' by Israeli forces, said Whittall, head of OCHA's office for the occupied Palestinian territories. And, he added, they have now become the 'protectors of the goods being distributed through Israel's new militarized hubs,' referring to the GHF-run sites. The Israeli military did not reply when asked for comment on allegations it has allowed armed groups to loot trucks. But the Israeli prime minister's office called the accusations 'fake news,' saying, 'Israel didn't allow looters to operate in Israeli controlled areas.' Israel often accuses Hamas of stealing from trucks. Muhammad Shehada, a political analyst from Gaza who is a visiting fellow at the European Council on Foreign Relations, said he doesn't believe Israel's support for armed groups is aimed at directly fighting Hamas. So far there has been no attempt to deploy the groups against the militants. Instead, he said, Israel is using the gangs and the looting to present GHF 'as the only alternative to provide food to Palestinians,' since its supplies get in while the U.N.'s don't. Israel wants the GHF to replace the U.N.-led aid system because it claims Hamas has been siphoning off large amounts of supplies. The U.N. denies that significant amounts have been taken by Hamas. Israel has also said it aims to move all Palestinians in Gaza to a 'sterile zone' in the south, around the food hubs, while it fights Hamas elsewhere. The U.N. and aid groups have rejected that as using food as a tool for forced displacement. The Abu Shabab group has issued videos online urging Palestinians to move to tent camps in Rafah. Israel barred all food and other supplies from entering Gaza for 2 ½ months pending the start of GHF — a blockade that has brought the population to the brink of famine. GHF started distributing food boxes on May 26 at three hubs guarded by private contractors inside Israeli military zones. Israel has let in some trucks of aid for the U.N. to distribute. But the U.N. says it has been able to get little of it into the hands of Palestinians because of Israeli military restrictions, including requiring its trucks to use roads where looters are known to operate. 'It's Israel's way of telling the U.N., if you want to try to bring aid into Gaza, good luck with this,' said Shehada. 'We will force you to go through a road where everything you brought will be looted.' Frankel, Mednick, Magdy and Keath write for the Associated Press. Magdy and Keath reported from Cairo.
Yahoo
41 minutes ago
- Yahoo
Week in Review: Why Anthropic cut access to Windsurf
Welcome back to Week in Review! Got lots for you today, including why Windsurf lost access to Claude, ChatGPT's new features, WWDC 2025, Elon Musk's fight with Donald Trump, and lots more. Have a great weekend! Duh: During an interview at TC Sessions: AI 2025, Anthropic's co-founder had a perfectly reasonable explanation for why the company cut access to Windsurf: 'I think it would be odd for us to be selling Claude to OpenAI,' Chief Science Officer Jared Kaplan said, referring to rumors and reports that OpenAI, its largest competitor, is acquiring the AI coding assistant. Seems like a good reason to me! Everything is the same: Chinese lab DeepSeek released an updated version of its R1 reasoning AI model last week that performs well on a number of math and coding benchmarks. Now some AI researchers are speculating that at least some of the source data it trained on came from Google's Gemini family of AI. WWDC 2025: Apple's annual developers conference starts Monday. Beyond a newly designed operating system, here's what we're expecting to see at this year's event, including a dedicated gaming app and updates to Mac, Watch, TV, and more. This is TechCrunch's Week in Review, where we recap the week's biggest news. Want this delivered as a newsletter to your inbox every Saturday? Sign up here. Business in the front: ChatGPT is getting new features for business users, including connectors for Dropbox, Box, SharePoint, OneDrive, and Google Drive. This would let ChatGPT look for information across your own services to answer questions. Oh no: Indian grocery delivery startup KiranaPro was hacked, and all of its data was wiped. According to the company, it has 55,000 customers, with 30,000 to 35,000 active buyers across 50 cities, who collectively place 2,000 orders daily. Artsy people, rejoice! Photoshop is now coming to Android, so users of Google's operating system can gussy up their images, too. The app has a similar set of editing tools as the desktop version, including layering and masking. Let's try that again: Tesla filed new trademark applications for "Tesla Robotaxi" after previous attempts to trademark the terms 'Robotaxi' and 'Cybercab" failed. Rolling in dough: Tech startup Anduril just picked up a $1 billion investment as part of a new $2.5 billion raise led by Founders Fund, which means Anduril has doubled its valuation to $30.5 billion. On the road again: When Toma's founders realized car dealerships were drowning in missed calls, they hit the road to see the problem firsthand. That summer road trip turned into a $17 million a16z-backed fundraise that helped Toma get its AI phone agents into more than 100 dealerships across the U.S. Fighting season: All gloves were off on Thursday as Elon Musk and President Trump took to their respective social networks to throw jabs at each other. Though it might be exciting to watch rich men squabble in public, the fallout between the world's richest person and a sitting U.S. president promises to have broader implications for the tech industry. Money talks: Whether you use AI as a friend, a therapist, or even a girlfriend, chatbots are trained to keep you talking. For Big Tech companies, it's never been more competitive to attract users to their chatbot platforms — and keep them there. This article originally appeared on TechCrunch at
Washington Post
an hour ago
- Washington Post
2026 races loom at Georgia Republican convention as Trump loyalty dominates
DALTON, Ga. — Steve Bannon took the stage Friday night at the Georgia Republican Convention to say it's too early to be talking about 2026. 'Don't even think about the midterms,' the Republican strategist told activists. 'Not right now. '26, we'll think about it later. It's backing President Trump right now.' But it didn't work. There was plenty of praise for Donald Trump. And while the party took care of other business like electing officers and adopting a platform, the 2026 races for governor and Senate were already on the minds of many on Friday and Saturday in the northwest Georgia city of Dalton. 'Everybody campaigns as quick as they can,' U.S. Rep. Marjorie Taylor Greene told The Associated Press Saturday. Lots of other people showed up sounding like candidates. Greene, after passing on a U.S. Senate bid against Democratic incumbent Jon Ossoff, laid out a slate of state-level issues on Saturday that will likely fuel speculation that she might run for governor. Echoing Trump's signature slogan, Greene told the convention to 'Make Georgia great again, for Georgia.' She called for abolishing the state income tax, infusing 'classical' principles into Georgia's public schools, reopening mental hospitals to take mentally ill people off the streets, and changing Georgia's economic incentive policy to de-emphasize tax breaks for foreign companies and television and moviemakers. 'Now these are state-level issues, but I want you to be talking about them,' Greene said. In her AP interview before the speech, Greene said running for governor is an 'option,' but also said she has a 'wonderful blessing' of serving her northwest Georgia district and exercising influence in Washington. 'Pretty much every single primary poll shows that I am the top leader easily, and that gives me the ability to think about it. But it's a choice. It's my own, that I will talk about with my family.' More likely to run for governor is Lt. Gov. Burt Jones, who is expected to announce a bid later this summer. 'I promise you, I'm going to be involved in this upcoming election cycle,' Jones told delegates Friday. Like Greene, Jones is among the Georgia Republicans closest to Trump, and emphasized that 'the circle is small' of prominent Republicans who stood by the president after the 2020 election. Jones also took a veiled shot at state Attorney General Chris Carr, who declared his bid for governor in December and showed up Friday to work the crowd, but did not deliver a speech to the convention. 'Always remember who showed up for you,' Jones said. 'And always remember who delivers on their promises.' Carr told the AP that he didn't speak because he was instead attending a campaign event at a restaurant in Dalton on Friday, emphasizing the importance of building personal relationships. Although Trump targeted him for defeat in the 2022 primary, Carr said he's confident that Republicans will support him, calling himself a 'proud Kemp Republican,' and saying he would focus on bread-and-butter issues. 'This state's been built on agriculture, manufacturing, trade, the military, public safety,' Carr said. 'These are the issues that Georgians care about.' The easiest applause line all weekend was pledging to help beat Ossoff. 'Jon Ossoff should not be in office at all,' said U.S. Rep. Buddy Carter, who is spending heavily on television advertising to support his Senate run. 'Folks, President Trump needs backup, he needs backup in the Senate,' said state Insurance Commissioner John King, who is also running for the Senate. 'He's going to need a four-year majority to get the job done. And that starts right here in the state of Georgia.' Former University of Tennessee football coach Derek Dooley, who expressed interest Friday in running for Senate, did not address delegates. But one other potential candidate, U.S. Rep. Mike Collins, did. Collins told delegates that in 2026 it was a priority to defeat Ossoff and replace him with a 'solid conservative.' It's not clear, though, if Collins himself will run. 'We're going to see how this thing plays out,' Collins told the AP. 'I'm not burning to be a senator, but we've got to take this seat back.'
