Gaza plan on hold as Board of Peace faces funding gap

Board of Peace has received just $1 billion out of $17 billion pledged, hampering efforts by the Trump administration to move forward with its Gaza reconstruction plan.

By World Israel News Staff

President Donald Trump’s flagship plan for postwar Gaza is running into deep financial and political trouble, leaving the administration’s plans for rebuilding the Gaza Strip in limbo.

Thus far, the US-led Board of Peace has received less than $1 billion of the $17 billion pledged for reconstruction and governance efforts, according to multiple sources who spoke with Reuters.

The shortfall has slowed efforts to deploy the National Committee for the Administration of Gaza, or NCAG, a committee of Palestinian technocrats tasked with taking over civilian administration in the enclave from Hamas.

The committee has been unable to enter Gaza because of both the funding shortfall and security problems, while a Palestinian official familiar with the matter said that Board of Peace envoy Nickolay Mladenov told Palestinian factions that “no money is currently available.”

The funding crunch comes at a delicate moment for Trump’s broader Middle East policy goals.

At the center of the stalled plan is Ali Shaath, the former Palestinian Authority official chosen to chair the 15-member NCAG.

Hamas has signaled it is prepared to hand over governance to the committee, according to Reuters, and in February the NCAG began recruiting police as part of preparations for a post-Hamas administrative transition.

However, Hamas has refused to agree to completely disarm. Israel insists Hamas must fully disarm before any meaningful withdrawal can take place, while Hamas says it will not surrender its weapons without firm guarantees that Israeli forces will leave Gaza.

Reuters reported that Egyptian-hosted disarmament talks remain deadlocked, with one diplomatic source warning that the situation could slide back into full-scale war.

The Board of Peace has denied claims that it is short on cash. In a statement posted after the Reuters report, it said it operates by calling capital only when needed and that “all funding requests have been met immediately and in full.”

Nevertheless, there are indications that the project has slowed sharply.

AP reported this week that the Board of Peace has not held a meeting since shortly after its initial launch and that its plans to begin reconstructing the Gaza Strip remain in limbo.

The same report said most of the ceasefire’s core promises — including reconstruction, governance transfer and a stabilization mechanism — remain largely unfulfilled six months after the truce took effect.

Board of Peacegaza stripTrump Gaza plan