An internal US government review found no evidence of widespread theft by Hamas of US-funded humanitarian aid in Gaza, contradicting the State Department’s claims that were used to justify backing a controversial private organization that took over aid distribution in the enclave.
The analysis, conducted by the US Agency for International Development (USAID), looked into 156 incidents of waste, fraud, and abuse reported by partner organizations between October 2023 and May 2025.
The review of the incidents, which was first reported by Reuters, “found no affiliations” with sanctioned groups or foreign terrorist organizations, according to a presentation seen by CNN.
Moreover, the review found only a small amount of misdirection of USAID-funded humanitarian aid in Gaza – less than one percent was affected by loss, theft, diversion, fraud or waste.
“There was no indication that there was a systemic loss due to Hamas interference or theft or diversion,” a source familiar with the report told CNN.
The Trump administration has repeatedly claimed there is widespread theft of humanitarian aid by Hamas. They have said that only the Gaza Humanitarian Fund (GHF), a private US and Israel-backed organization, is able to distribute assistance to the besieged enclave without such theft occurring.
“We want to see as much aid getting into Gaza as possible in a way that is not being looted by Hamas, and this mechanism, the Gaza Humanitarian Foundation, has been a way to do that,” State Department deputy spokesperson Tommy Pigott said Thursday. “We’re calling for additional support of that foundation to deliver that aid.”
The USAID findings were presented to officials working in the State Department’s Middle East bureau, as well as people working on humanitarian aid and the USAID Office of the Inspector General. USAID ceased operations on July 1 and some of its work was transferred to the State Department. However, the USAID watchdog remains operational. It is unclear if the findings have been relayed to State Department leadership.
More than 1,000 people have been killed by Israeli forces while seeking aid, according to the Palestinian Health Ministry and the United Nations, with 60 percent killed while trying to reach GHF sites. Thousands are suffering from malnutrition and more than a dozen people have starved to death this week amid ongoing Israeli restrictions on aid.
A State Department spokesperson claimed there is “endless video evidence of Hamas looting” and “intelligence” showing that “a significant portion of non-GHF aid trucks have been diverted, looted, stolen, or ‘self-distributed.’” The spokesperson did not provide examples of the video evidence, but said “the mountain of evidence includes publicly available videos on social media.”
They also accused aid workers of lying about looting “in a poor attempt at an aid corruption coverup.”
“As the situation on the ground develops, we will continue to assess the most effective way to deliver aid to the people of Gaza,” the spokesperson said.
A spokesperson for USAID’s inspector general office said they have “consistently cautioned USAID, NGOs, and UN agencies of the risk of aid being diverted to Hamas and other terrorist organizations.”
“Our Gaza-related investigations continue, including into UNRWA staff that participated in the October 7 terrorist attacks,” the spokesperson said.
Another source familiar with the matter noted that a recent report from USAID’s OIG “has identified shortcomings and vulnerabilities in USAID’s ability to ensure that humanitarian assistance to Gaza is not diverted to Hamas and other terrorist organizations.”
The USAID analysis, which was completed in late June, noted that “the majority of incidents could not be definitively attributed to a specific actor.”
“Partners often largely discovered that commodities had been stolen in transit without identifying the perpetrator,” the presentation said.
Given the perpetrator could not be identified, it is possible that Hamas has stolen aid, two sources said. However, they cast doubt on the idea that there would be systemic theft without any evidence. Humanitarian officials in the past have also said they did not experience widespread diversion.
One of the sources noted that USAID does not vet the beneficiaries of its aid, so in theory, the families of Hamas government officials in Gaza could have received aid, “but that’s not an armed faction of Hamas. That’s the population of Gaza.”
The USAID analysis found that the Israel Defense Forces (IDF) “was either directly or indirectly responsible for the loss” of US-provided aid in 28 percent of incidents of theft or waste between October 2023 and May 2025. The finding was based on the reports from partners organizations.
According to a presentation of the analysis, this included the loss of goods due to “airstrikes, evacuation orders, or IDF direction to use high risk delivery routes against partner requests.”
“Partners often noted that looting occurred en route (to distribution sites) despite extensive coordination with the IDF,” the presentation said. “When partners desired to take alternate routes due to high risk of theft or looting, they were forced by the IDF to take riskier routes with known threats putting commodities at risk.”
The IDF did not respond to the findings of the report but claimed that “it has been well documented throughout the war how Hamas systematically exploited humanitarian aid to fund terrorist activities in various ways.”
This story has been updated with additional information.
CNN’s Dana Karni contributed to this report.
