President Donald Trump’s ambitious initiative to rebuild Gaza has encountered a severe financial obstacle, with sources revealing that his Board of Peace has collected less than $1 billion of the $17 billion promised by international donors.
The funding shortage has effectively halted Trump’s strategy for the devastated Palestinian territory’s reconstruction, according to Reuters sources familiar with the situation.
Just ten days prior to U.S.-Israeli military operations against Iran that escalated regional tensions into full conflict, Trump organized a Washington conference where Gulf Arab nations committed billions toward Gaza’s governance and rebuilding efforts following two years of Israeli bombardment.
The reconstruction blueprint calls for extensive rebuilding of the coastal territory following the disarmament of Hamas, the Palestinian militant organization whose attacks on Israel sparked the Gaza offensive, and the complete withdrawal of Israeli forces.
The promised financial contributions were also designated to support operations of the National Committee for the Administration of Gaza (NCAG), a U.S.-supported group of Palestinian technocrats designed to take governmental control from Hamas.
A source with direct access to the peace board’s operations revealed that among ten nations that made funding commitments, only three have actually delivered money: the United Arab Emirates, Morocco, and the United States.
The Iran conflict “has affected everything,” the source explained, making existing funding challenges even worse.
Security concerns and insufficient funding have prevented NCAG from entering Gaza, the source noted. Despite a ceasefire agreement reached last October, Israeli military actions have resulted in at least 700 Palestinian deaths according to Gaza health officials, while militant attacks have claimed four Israeli soldiers’ lives.
A Palestinian official with knowledge of the situation said the board has notified Hamas and other Palestinian groups that NCAG cannot currently enter Gaza due to financial constraints.
“No money is currently available,” the official quoted board envoy Nickolay Mladenov as telling Palestinian organizations.
Hamas has consistently stated its willingness to transfer governance responsibilities to NCAG, which is headed by Ali Shaath, a former deputy minister with the Palestinian Authority that currently maintains limited self-governance in portions of the Israeli-occupied West Bank.
Shaath’s committee is intended to take charge of Gaza’s government ministries and oversee its police operations.
According to a diplomatic source, Shaath and his 14 committee members remain confined to a Cairo hotel under American and Egyptian supervision.
Neither the Board of Peace nor NCAG representatives provided immediate responses to requests for comment.
International organizations estimate that rehabilitating Gaza, where Israeli bombardments destroyed four-fifths of all buildings over two years, would require approximately $70 billion.
This struggling Gaza initiative mirrors other ambitious Trump projects, as the president has positioned himself as a global peacemaker while facing difficulties ending the Ukraine conflict as promised and watching this week’s Iran truce face immediate serious challenges.
Egypt, which has been facilitating disarmament negotiations, extended new meeting invitations to Hamas for Saturday, according to a source within the militant organization.
The ceasefire ended large-scale warfare but left Israeli forces controlling a depopulated area covering more than half of Gaza, while Hamas maintains power in a narrow coastal section.
Trump’s board has been directing negotiations with Hamas and other Palestinian factions regarding disarmament. Israel demands Hamas surrender its weapons before withdrawing troops from Gaza, while Hamas refuses compliance without guarantees of Israeli withdrawal and cessation of attacks in Gaza.
The diplomatic source familiar with disarmament discussions said negotiations remain stalled and expressed concern that Israel might seek justification to resume full-scale Gaza operations.
Israeli military leadership has indicated preparation for rapid return to comprehensive warfare if Hamas fails to surrender its weapons.
The Gaza conflict originated with Hamas’ October 7, 2023, attacks on Israel that resulted in 1,200 deaths according to Israeli records.
Israel’s subsequent two-year military campaign has killed more than 72,000 Palestinians, predominantly civilians, according to Gaza health authorities, while causing widespread famine and displacing most of the territory’s population.
