State Department Won’t Reveal Who Got Biden Gaza Cash, Blames Israel

United States House of Representatives - Office of Ruben Gallego, Public domain, via Wikimedia Commons
American Liberty News
- June 4, 2026
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A federal judge is ordering the State Department to explain why it is blaming Israel for its own refusal to disclose who in Gaza got U.S. taxpayer cash from Joe Biden.

The non-profit public interest law firm Judicial Watch reports “Judge Reggie B. Walton has ordered the U.S. State Department to explain its claim that the recipients of a Biden-era United States Agency for International Development (USAID) Gaza aid grant cannot be disclosed because the agency’s workers could be put at risk by Israel.”

“I attended the court hearing in this case…This is incredible! The State and Justice Departments continue to cover up who in Gaza received American tax dollars from the Biden administration. The government has turned a simple FOIA case into a foreign policy scandal,” Judicial Watch President Tom Fitton said. “Were terror-linked groups funded by USAID? It sure looks that way. Moreover, why are the State and Justice Departments pushing leftist smears against Israel in federal court? Secretary Rubio and Attorney General Bondi need to ride herd and stop this cover-up justified by a sly Deep State libel of Israel.”

Judicial Watch, which is suing for the documents, reports “at a court hearing on the issue Judge Walton was incredulous at the State Department’s argument, as it necessarily implied that it is the U.S. Government’s position that U.S. ally Israel would purposely target and kill innocent air workers in Gaza The order comes in a Freedom of Information Act (FOIA) lawsuit seeking records from USAID regarding $27 million in grants allocated to ‘Miscellaneous Foreign Awardees’ for use in Gaza.”

Judicial Watch reveals “Judge Walton’s order calls for a supplemental explanation regarding USAID’s reliance on FOIA Exemption 6, which protects against unwarranted invasions of personal privacy, in order to hide the recipients of the Biden USAID grant made shortly after the Hamas mass murder, rape, and kidnapping of Israeli and American citizens:”

[T]he defendant shall file at least one supplemental declaration explaining the defendant’s basis for asserting that its grant recipient— information about which the defendant seeks to withhold from disclosure citing Exemption 6 to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552—and its affiliates could be targeted if the information requested by the plaintiff were released. Specifically, the Court requires more than a general assertion that aid workers have been targeted or harmed in the Gaza Strip in order to make a determination as to whether FOIA Exemption 6 should apply to the information at issue here, including for example, an explanation of who might target the grant recipient or its affiliates, and the kind of targeting about which the defendant is concerned. It is further ORDERED that, on May 27, 2025, at 11:00 a.m., the parties shall appear before the Court for a motion hearing.

Judicial Watch reports it “sued in July 2024 after the USAID failed to respond to an April 2, 2024, FOIA request (Judicial Watch v. U.S. Agency for International Development (No. 1:24-cv-02159)) that asks for:”

All records identifying the recipients of USAID funding under the $7,000,000 grant allocation awarded on or about November 15, 2023, and associated with Federal Award Identification Number 720BHA24GR00005.

All proposals, applications, scope of work documents, or similar records related to any grant award or sub-award associated with Federal Award Identification Number 720BHA24GR00005.

“USAID has produced records but refuses to disclose what organizations received the money,” Judicial Watch reports, noting, “On November 15, 2023, the Bureau for Humanitarian Assistance, a component of the USAID, issued a $7 million grant for ‘multisectoral response in Gaza.’ The grant was awarded to ‘Miscellaneous Foreign Awardees.’ The same day a ‘continuation’ grant of $20 million was also issued for ‘multisectoral response.’ USAID reported that over $282 million was obligated to the West Bank and Gaza in fiscal year 2023.”

“It was recently discovered that USAID provided millions of dollars in funding to extremist groups tied to designated terrorist organizations and their allies, according to a report published by Middle East Forum, a U.S. think tank,” Judicial Watch reveals.

Judicial Watch also reveals “in July 2024, the Office of the Inspector General for USAID issued a report titled “Assessment of USAID’s Oversight Policies to Prevent the Diversion of Assistance to Hamas and Other Terrorist Organizations” in which it states:”

The USAID Office of Inspector General (USAID OIG) provides independent oversight of USAID’s programs, operations, and personnel and has previously identified USAID-funded assistance to Gaza as being at high risk for diversion and misuse.

***

Regarding the UN’s processes for vetting their own staff, USAID Administrator Samantha Power noted—following allegations that officials working for UNRWA [United Nations Relief and Works Agency] engaged in the October 7, 2023 attacks in Israel—“obviously the vetting is something that has to be significantly strengthened.”

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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Donny Ferguson

Donny Ferguson is a professional fundraiser and organizational manager. Born and raised in Texas, he has lived in Washington, D.C. for 16 years. Ferguson also served as Senior Communications and Policy Adviser in the United States House of Representatives, operating one of Capitol Hill's most effective media operations.

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