Donald Trump’s ambitious plan for the reconstruction and future administration of Gaza has run into serious financial difficulties, raising fresh doubts about the pace and viability of the proposed postwar recovery effort, according to Reuters.
According to officials familiar with the initiative, the Board of Peace, established under Trump’s plan for Gaza, has received only a small portion of the nearly $17 billion pledged by international donors during its initial meetings. While the United States and several partner countries had announced major commitments, only limited funds have reportedly been transferred so far.
Sources involved in the process say that less than $1 billion has been made available, leaving key administrative and reconstruction plans largely on hold. The shortfall comes at a time of renewed regional instability, with recent military tensions involving Iran and Israel further complicating diplomatic efforts.
The funding crisis has directly affected the National Committee for the Administration of Gaza (NCAG), the body intended to oversee civilian governance in the territory after any future disarmament agreement and Israeli military withdrawal. The committee, led by former Palestinian official Ali Shaath, is currently based in Cairo and has not yet been able to begin operations inside Gaza.
Officials say the committee remains unable to deploy because of both security risks and the lack of operational funds. Palestinian sources added that local groups, including Hamas, have been informed that the committee’s work cannot move forward until financing is secured.
The broader challenge remains immense. International institutions estimate that rebuilding Gaza after two years of war could cost as much as $70 billion, with vast sections of homes, roads, hospitals, and public infrastructure either damaged or destroyed.
Despite ongoing ceasefire efforts and negotiations hosted by Egypt, political progress remains limited. Israeli forces continue to maintain a strong military presence in large parts of Gaza, while disagreements over disarmament and withdrawal continue to stall diplomatic talks.
As promised funds remain delayed and regional tensions persist, Trump’s proposed framework for postwar Gaza now faces growing uncertainty, adding another layer of difficulty to an already fragile peace process.
