Indian Council of World Affairs

Abstract: The Israel -Palestine conflict dates back decades with overlapping religious and territorial claims over the holy land. The US, since its establishment of USAID offices in Gaza in 1994, has been a key country providing short-term and long-term relief and recovery support. As policies within America turn inwards, the process of aid within the Israel-Hamas conflict has seen a transformation. This essay explores this change in aid flows. 

The Humanitarian Situation in Gaza 

Since the escalation of tensions from 7 October, 2023, Gaza has faced the brunt of the Israel-Hamas conflict with large numbers of civilian deaths, and consequently, displacement, shortages of food, water and fuel. Air strikes on hospitals have caused a lack of essential health supplies with shrinking spaces for civilians to seek refuge and treatment. The Ministry of Health of Gaza has stated over 54,000 Palestinians of which 31% are children were killed with over 123,308 casualties^[i]. 

On 2 March, 2025 Prime Minister Netanyahu imposed a blockade of aid into the Gaza Strip as aid was deemed to be stolen by Hamas forces, preventing access to the people of Gaza and being used to finance security threats to Israel. Under increased international pressure and condemnation, Israeli authorities allowed limited aid into Gaza on account of growing famine concerns. However, 44% of attempts to move aid were denied by Israeli authorities, with aid only being allowed if it comes internally through the Kerem Shalom crossing, located at the junction of the Gaza Strip, Israel and Egypt in southern Gaza. Partial and inadequate delivery of aid delivery has led to looting and crowd violence. 

As the humanitarian crisis in Gaza deepens, global actors have attempted to step in. Most notably the US, which has historically played a significant role in supporting Gaza through aid -directly and multilaterally. 

US Aid to Gaza 

In the past, the US has provided aid to the Palestinian territories in the form of direct funds through the United States Agency for International Development (USAID) and the Economic Support Fund (ESF) since 1994. Previously, aid flowed primarily through UN organisations with 50% of USAID’s Gaza programming going through UN organisations with major funding going to World Food Program, UNICEF and International Organisation for Migration in 2024^[ii].  The US has also been the biggest donor to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), which was previously named as a key organisation for coordinating data driven and targeted aid into Gaza by USAID. 

Under the new administration, the US pulled out of several UN-linked aid mechanisms. The recent Trump Administration Executive Order titled “Reevaluating and Realigning United States Foreign Aid” ^[iii], stated a 90-day freeze on development assistance to states with the exception of Israel and Egypt. With the US withdrawal from these organisations, previous USAID operations have been affected. Programmes, such as the WASH (Water, sanitation and health) and the Infrastructural Needs Program funded by USAID have been halted indicating a structural shift. The confusion caused by the sudden withdrawal of existing aid has stuck them in a limbo, as seen with the 60,000 metric tonnes of food containers being left to rot in storage^[iv]. With government-supplied aid to Gaza through the UN stalled, a private entity called the Gaza Humanitarian Foundation (GHF) now channels American aid to Gaza. 

Gaza Humanitarian Fund (GHF) 

The GHF is an NGO backed by American and Israeli forces. Its official document states the reason for its creation as ‘collapse of traditional relief channels’. GHF proposed an aid management programme that distributes pre-packaged supplies of food rations, hygiene kits and medicine from four Secure Distribution Sites (SDS) aimed at helping 1.2 million (Total population of Gaza: 2.2 million) Palestinians. The mission statement of the organisation cites its primary objective as ensuring proper utilisation of aid without misuse and diversions. This is aimed to be done through continuous reporting and coordination with Israeli authorities to maintain neutrality. 

Although the organisation emphasises transparency through third party monitoring and evaluation frameworks, major aid organisations, including the UN, have rejected the organisations aid distribution mechanisms. The GHF has been criticised for being a politically driven, Western-influenced aid system lacking involvement of local actors, such as local NGOs or aid workers. 

In a joint statement released by major NGOs functioning in Gaza, the GHF has been condemned for the systematic displacement of the civilians through military strategy^[v]. The statement points out that the aid distribution systems set up by the GHF deny impartial access, as aid distribution is controlled by Israel. Its distribution systems in place, given the widespread destruction, fail to account for injured and disabled civilians who are unable to move through rubble to access aid. The organisation faces additional criticism regarding assistance to Israel in its efforts to push internally displaced citizens from north to the south of Gaza. 

With the GHF board members including the US military personnel, the principles of neutrality have been called into question. The use of armed private contractors, paired with routing of aid through Israeli checkpoints, has been described by its critics as transforming humanitarian assistance into political control. 

Conclusion 

With limited aid deliveries, the majority of Gaza's population remains under food insecurity with deepening famine risks. Despite the US aid mechanisms undergoing change, maintaining aid flows to Gaza remains essential.  

As aid becomes a complex issue in combating the ongoing humanitarian crisis in Gaza, the question of transparency in the disbursement manner arises. With the current inability of the UN to operate in Gaza, aid provided by GHF is much needed. It is also the need of the hour for international aid agencies to work with parties involved in the conflict to resume aid services in Gaza. 

Nonetheless, the US, Israel and GHF have to provide full information of their operation and operate keeping humanitarian standards in mind, ensuring  resources are available to the majority population of Gaza.

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*Monya Sudersanam , Research Intern, Indian Council of World Affairs (ICWA)
Disclaimer: The views expressed are personal. 

Endnotes

^[i] Humanitarian Situation Update #292 | Gaza Strip. (May 28, 2025). United Nations Office for the Coordinating Humanitarian Affairs. https://www.ochaopt.org/country/opt (Does not include casualties from northern Gaza governorate)

^[ii] Office Inspector General: USAID. (July 25, 2024). USAID OIG Advisory on Gaza Oversight  USAID OIG's. https://oig.usaid.gov/sites/default/files/2024-08/USAID%20OIG%20Advisory%20on%20Gaza%20Oversight%207-25-2024.pdf

^[iii] Bruce, T. ( January 26, 2025). Implementing the President's Executive Order on Reevaluating and Realigning United States Foreign Aid - United States Department of State. State Department. https://www.state.gov/implementing-the-presidents-executive-order-on-reevaluating-and-realigning-united-states-foreign-aid/

^[iv] Donati, J., Farge, E., Kannampilly, A., & Landay, J. (May 16, 2025). Exclusive: US aid cuts leave food for millions mouldering in storage. Reuters. Retrieved June 4, 2025, from https://www.reuters.com/world/us-aid-cuts-leave-food-millions-mouldering-storage-2025-05-16/

^[v] Leading Aid and Human Rights Organisations Condemn the Gaza Humanitarian Foundation as a Dangerous, Politicised Sham - occupied Palestinian territory. (2025, May 19). ReliefWeb. https://reliefweb.int/report/occupied-palestinian-territory/leading-aid-and-human-rights-organisations-condemn-gaza-humanitarian-foundation-dangerous-politicised-sham