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Donald Trump's ambitious Gaza reconstruction initiative is facing a serious setback, with his Board of Peace receiving only a fraction of the $17 billion pledged by international donors. According to sources familiar with the matter, the funding shortfall is now blocking critical progress on the ground.
Just ten days before U.S.-Israeli military strikes on Iran escalated regional tensions, Trump held a Washington conference where Gulf Arab nations announced billions in financial commitments toward Gaza's governance and rebuilding. The plan was designed to facilitate large-scale reconstruction following Hamas disarmament and an Israeli troop withdrawal from the war-ravaged territory.
Sources indicate that out of ten countries that made pledges, only three — the United Arab Emirates, Morocco, and the United States — have actually transferred funds, with total contributions falling below $1 billion. The ongoing Iran conflict has compounded an already difficult funding situation, according to one insider with direct knowledge of the board's operations.
The National Committee for the Administration of Gaza (NCAG), a U.S.-backed group of Palestinian technocrats tasked with replacing Hamas governance, has also been unable to enter Gaza due to both financial constraints and deteriorating security conditions. A Palestinian official cited board envoy Nickolay Mladenov as directly informing Palestinian factions that no money is currently available for operations.
The NCAG's 15-member team, led by former Palestinian Authority deputy minister Ali Shaath, has reportedly been stationed in a Cairo hotel under American and Egyptian supervision while awaiting deployment.
The Board of Peace, however, publicly denied any funding crisis, stating that all capital requests have been fulfilled promptly and in full.
The Gaza funding struggle reflects a broader pattern for Trump's foreign policy ambitions — from stalled Ukraine peace negotiations to a fragile Iran truce — raising questions about the long-term viability of his Middle East strategy.
