USAID analysis finds no evidence of widespread aid diversion by Hamas in Gaza

It was compiled before USAID officially ceased independent operations in July.

An analysis compiled by USAID officials examining more than 150 reported incidents involving the theft or loss of U.S.-funded humanitarian aid in the war-torn Gaza Strip says it failed to find any evidence that Hamas -- the militant rulers of the Palestinian enclave -- engaged in widespread diversion of assistance, according to a presentation reviewed by ABC News.

The findings of the report appear to undercut the Trump administration's repeated claims that Hamas has regularly interfered with aid distribution in the past -- assertions it has used to justify its support for the controversial Gaza Humanitarian Foundation (GHF) and for measures undertaken by Israel to limit the flow of assistance to neighboring Gaza through other pathways.

The GHF -- with Israel's approval and despite rejection from the United Nations -- took over most of the aid distribution system in Gaza on May 27, after an 11-week Israeli blockade on all supplies from entering the strip. Israel has long accused Hamas of stealing aid provided by the U.N. -- formerly the main distributor -- and others to fund its militant activity -- claims which Hamas denies.

Israel has allowed a limited amount of supplies into Gaza since lifting the blockade and, according to an Israeli security official, is "coordinating future airdrops of aid" by foreign countries "that are expected to take place in the coming days." This comes after a coalition of more than 100 organizations warned this week that "mass starvation" is spreading in Gaza with "supplies now totally depleted."

USAID officials behind the presentation say they analyzed alleged incidents of fraud, abuse and waste reported between October 2023, when the ongoing Israel-Hamas war began, and last May. It was compiled before the U.S. Agency for International Development (USAID) -- once the world's largest single donor of humanitarian aid -- officially ceased independent operations on July 1. The Trump administration canceled more than 80% of the agency's programs, while the remainder were absorbed by the U.S. Department of State.

USAID officials say their findings indicate that in the majority of cases involving the loss of aid, the perpetrator could not be definitively identified.

The Israel Defense Forces denied the report in a statement to ABC News, saying "not only does the report ignore clear and explicit evidence that Hamas exploits humanitarian aid to sustain its fighting capabilities, it goes so far as to criticize the IDF for routing decisions made specifically to protect humanitarian staff and shipments."

The IDF added that when it "directs aid deliveries along specific routes, it is based on the operational reality and intelligence assessments, aimed at safeguarding both the aid and the humanitarian actors — precisely the issue the report claims is not being addressed."

The State Department is also pushing back forcefully on the analysis, which was first reported by Reuters, as well as media coverage related to the matter.

A State Department spokesperson called it "astonishing" that "the media is busy debating whether the masterminds of Oct. 7 are somehow too principled to loot."

"There is endless video evidence of Hamas looting, not to mention members of the aid-industrial complex who have admitted that looting exists by reporting it as 'self-distribution,' in a poor attempt at an aid corruption coverup," the spokesperson said. "Available intelligence confirms what is reflected in open-source information: that a significant portion of non-GHF aid trucks have been diverted, looted, stolen, or 'self-distributed.'"

Despite this, the Trump administration -- a staunch ally of Israel -- has provided no evidence of Hamas carrying out widespread aid diversion to date.

The IDF said it is "making tremendous efforts to enable the safe distribution of humanitarian aid under complex operational conditions."

The ongoing Gaza war erupted after Hamas led a surprise terror attack on southern Israel on Oct. 7, 2023, killing 1,200 people there and taking 251 others hostage, according to figures from the Israeli government. Since then, Israeli forces have killed more than 59,000 people in Gaza, according to data released by the strip's Hamas-run Ministry of Health.