Why is Israel paying $280 Million for GHF, Gaza Aid Group?!

Despite repeated denials, the Israeli government has reportedly allocated 700 million NIS (approximately $280 million) to support the Gaza Humanitarian Foundation (GHF), the new aid distribution body operating in the war-torn enclave. According to a Kan public broadcaster report released Wednesday, the funds were approved last month and funneled discreetly through the Defense Ministry, potentially to avoid public scrutiny.

Citing unnamed government officials, Kan reported that the decision to transfer the funds was kept intentionally quiet due to its expected unpopularity among the ruling coalition’s right-wing base. The Prime Minister’s Office has since denied the claim, insisting, “Israel does not fund the humanitarian assistance to the Gaza Strip.”

GHF began operations in late May as part of a U.S.- and Israel-backed effort to establish a post-UN aid mechanism in Gaza, one aimed at sidelining Hamas and ensuring aid reaches civilians directly. Israeli officials have publicly framed GHF as an independent body, with no Israeli funding or oversight. However, the Kan report and earlier investigations by The New York Times challenge that claim.

The Times reported in May that GHF was conceived by a group of Israeli military reservists, entrepreneurs, and government-linked businesspeople seeking to fill what they saw as a strategic vacuum in Gaza policy. According to the report, GHF’s origin traces back to late 2023 meetings involving “like-minded officials, military officers and business people,” some of whom now serve in key advisory roles.

GHF has said it has secured over $100 million in foreign government commitments, though it has declined to name the donor. That lack of transparency, combined with Israel’s public denials of funding, has led to growing scrutiny from both domestic critics and opposition leaders. Yair Lapid, head of the opposition, alleged last week that the government was channeling money to the group via foreign shell companies, an accusation quickly denied by the Prime Minister’s Office.

On the ground, GHF’s operations have encountered turbulence. This week, it temporarily shut down its aid sites after a series of deadly incidents near distribution centers. The IDF acknowledged firing warning shots on multiple days at civilians who deviated from designated paths. While Palestinian sources claim dozens were killed, the military maintains that those numbers are inflated and says investigations are underway.

In a statement, GHF said the pause in operations was needed to expand capacity and improve safety. It also confirmed that it had asked the IDF to implement clearer crowd control guidelines, expand safety corridors, and improve coordination to reduce the risk of clashes.

While the government remains publicly adamant that it is not bankrolling aid to Gaza, the growing body of evidence suggests otherwise, and raises uncomfortable questions. Can Israel credibly distance itself from an organization it helped conceive, staff, and, reportedly, fund? And what does that mean for a government seeking to simultaneously avoid civilian responsibility in Gaza and maintain security control? And why should Israel feed those who would happily destroy it?

As with so much else in the wake of October 7, the answer may lie in the increasingly blurred lines between military strategy, humanitarian need, and political survival.