Is it permissible to pay the price for a material taken from the state that was not available in the market, and distribute its price to the poor and needy, or to charities and houses of Allah?

If you have taken what is unlawful for you from the funds of the state or your employer, you must repent to Allah and return what you took to the concerned party if it is still available. If it has been consumed, you must return its like if it has a similar counterpart, or its value if it does not have a similar counterpart. If returning it is not possible, you must spend the amount on general Muslim welfare, such as mosques and hospitals, or on the poor and needy.