Donald Trump’s Board of Peace has received only a small portion of the $17 billion pledged for Gaza, hindering the U.S. president’s efforts to advance his vision for the Palestinian enclave’s recovery. This funding shortfall comes amid escalating tensions following U.S.-Israeli strikes on Iran, which have intensified regional instability.
In a significant development, just ten days before the outbreak of these hostilities, Trump convened a conference in Washington where Gulf Arab nations committed billions to support Gaza’s governance and reconstruction after two years of devastating Israeli bombardment. The plan aims to rebuild the coastal territory extensively, contingent on the disarmament of Hamas—the Palestinian militant group whose attacks on Israel triggered the conflict—and the subsequent withdrawal of Israeli forces.
The pledged funds were also intended to finance the operations of the newly formed National Committee for the Administration of Gaza (NCAG), a U.S.-backed body of Palestinian technocrats designed to replace Hamas’s control. However, only three of the ten countries that promised contributions—the United Arab Emirates, Morocco, and the United States—have delivered any funds, totaling less than $1 billion so far.
One insider involved with the peace board’s activities noted that the ongoing war with Iran has compounded existing financial challenges. The NCAG remains unable to enter Gaza due to both security concerns and the lack of funding. Despite a ceasefire agreement last October, Israeli attacks have continued, resulting in at least 700 deaths in Gaza, while militant actions have killed four Israeli soldiers.
Another source, a Palestinian official, revealed that the board has informed Hamas and other factions that the NCAG cannot assume control in Gaza at present due to the absence of available funds. Nickolay Mladenovas, the board’s envoy, reportedly communicated this to Palestinian groups, emphasizing the financial impasse.
Hamas has expressed willingness to transfer governance to the NCAG, led by Ali Shaath, a former Palestinian Authority deputy minister. Shaath’s committee, comprising 14 members, is intended to oversee Gaza’s ministries and police force. Currently, they remain confined to a hotel in Cairo under the supervision of American and Egyptian officials.
Reconstruction of Gaza, where approximately 80% of buildings were destroyed during the Israeli campaign, is estimated by international organizations to cost around $70 billion. The stalled peace plan reflects the broader difficulties Trump faces in fulfilling his peacemaking ambitions, as seen in his unsuccessful efforts to end the Ukraine war and the fragile ceasefire with Iran, which is already under severe strain.
Meanwhile, Egypt continues to host disarmament talks, inviting Hamas for further discussions. Although the ceasefire has prevented full-scale war, Israeli forces maintain control over a depopulated area covering more than half of Gaza, while Hamas governs a narrow coastal strip.
Trump’s board leads negotiations with Hamas and other Palestinian factions regarding disarmament. Israel insists that Hamas must disarm before Israeli troops withdraw, but Hamas demands guarantees of troop withdrawal and cessation of hostilities before complying. The talks remain deadlocked, with concerns that Israel may use this impasse as justification for resuming a full-scale offensive.
Israeli military officials have indicated preparations for a rapid return to war if Hamas does not disarm. The conflict began with Hamas’s October 7, 2023, attacks on Israel, which killed 1,200 people. Israel’s subsequent two-year military campaign has resulted in over 72,000 Palestinian deaths, mostly civilians, and has caused widespread famine and displacement across Gaza.
