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Fact check: Government #USAID established and funded the Palestinian cement company that built the terror tunnels
1. Summary of the results
The relationship between USAID and Palestinian cement infrastructure is complex and requires careful examination. Multiple sources confirm that USAID provided $310 million in funding to Sanad Construction Resources Company in 2016 to establish a cement factory in Palestine [1] [1] [1]. While USAID sacks have been found in Hamas tunnels, as confirmed by IDF commanders [2], there is no direct evidence establishing that USAID "established and funded" a company specifically for building terror tunnels.
2. Missing context/alternative viewpoints
Several important contextual elements are missing from the original statement:
- Sanad meets approximately 65% of the Palestinian cement market needs, serving various construction purposes beyond tunnel building [1]
- Former U.S. diplomat Dennis Ross acknowledged pressuring Israel to allow cement imports despite known risks of potential misuse [3]
- USAID's involvement in Palestinian territories includes multiple legitimate infrastructure projects focusing on water, energy, and economic development [4]
- There appears to be a "circular flow of money" where USAID both funded the factory and later purchased cement from it [5]
3. Potential misinformation/bias in the original statement
The original statement contains several problematic elements:
- It oversimplifies a complex situation by suggesting direct and intentional USAID involvement in tunnel construction
- It ignores the legitimate purposes of cement infrastructure in Palestinian territories
- It fails to acknowledge that while some cement may have been diverted for tunnel construction, this wasn't necessarily the intended purpose of USAID funding
Who benefits from these narratives:
- Anti-foreign aid groups benefit from narratives suggesting misuse of U.S. aid
- Pro-Israeli groups might benefit from narratives highlighting Hamas's misuse of humanitarian materials
- Pro-Palestinian groups benefit from emphasizing the legitimate need for construction materials
- Government oversight committees benefit from narratives suggesting need for stricter controls on foreign aid
The evidence suggests that while USAID-funded cement infrastructure may have been misused by Hamas, characterizing this as USAID "establishing and funding" terror tunnel construction is misleading and lacks nuanced understanding of the situation.