WASHINGTON — The Board of Peace, an advisory body established by U.S. President Donald Trump, unveiled a $2.45 billion first-phase recovery plan for the Gaza Strip on Wednesday, marking a significant diplomatic effort to address the humanitarian and infrastructure crisis in the territory.
The plan, detailed in a report released by the board, outlines a structured approach to reconstruction, focusing on immediate humanitarian needs, infrastructure repair, and long-term economic stabilization. The initiative is part of a broader strategy to support the ceasefire agreement brokered by the United States, Qatar, and Egypt, which has held largely since late 2025, although sporadic incidents have continued to challenge stability in the region.
Allocation of Funds
According to the board’s documentation, the $2.45 billion will be allocated across three primary categories: humanitarian aid, infrastructure reconstruction, and economic development. Approximately 40% of the funds are designated for immediate humanitarian relief, including food, medical supplies, and shelter for displaced populations. Another 35% is earmarked for the repair of critical infrastructure, such as water and sanitation systems, power grids, and transportation networks, which have suffered extensive damage during the conflict. The remaining 25% is intended for economic development projects aimed at creating jobs and fostering local enterprise, with a particular focus on the agricultural and construction sectors.
The board emphasized that the funds will be managed through a transparent, multi-stakeholder framework involving international organizations, non-governmental organizations (NGOs), and local Palestinian authorities. A dedicated oversight committee, comprising representatives from the United Nations, the World Bank, and regional partners, will monitor the disbursement and utilization of the funds to ensure accountability and efficiency.
Implementation Challenges
Despite the ambitious scope of the plan, experts and analysts have raised concerns about its feasibility. The security situation in Gaza remains volatile, with periodic clashes between Israeli forces and militant groups disrupting access to affected areas. Additionally, the political landscape in the region is complex, with competing interests among Palestinian factions, regional powers, and international actors potentially complicating the implementation of the recovery program.
“The plan is a necessary step, but its success will depend on sustained political will and cooperation from all parties involved,” said a senior official familiar with the negotiations, speaking on condition of anonymity. “Without a stable security environment and clear governance structures, even the most well-funded initiatives risk stalling.”
The Board of Peace has acknowledged these challenges, noting that the plan is designed to be adaptive, with regular reviews to adjust priorities based on evolving conditions on the ground. The board also highlighted the importance of international support, urging other nations and organizations to contribute additional resources to complement the U.S.-led effort.
International Response
The announcement has drawn mixed reactions from the international community. The United Nations welcomed the plan as a “positive step toward rebuilding Gaza,” while calling for increased funding to address the full scale of the crisis. European Union officials expressed support for the initiative but emphasized the need for a comprehensive political solution to the Israeli-Palestinian conflict to ensure long-term stability.
Regional reactions have been more divided. Egypt and Qatar, key mediators in the ceasefire negotiations, praised the plan as a “constructive contribution” to regional peace. In contrast, some Palestinian factions have criticized the initiative for not addressing the root causes of the conflict, including the occupation and blockade of Gaza. Israeli officials have generally supported the plan, viewing it as a means to stabilize the region and reduce the security burden on their forces.
Next Steps
The Board of Peace plans to begin the initial phase of the recovery program within the next 90 days, with a focus on deploying humanitarian aid and assessing the extent of infrastructure damage. A detailed implementation roadmap, including timelines and specific projects, is expected to be released in the coming weeks. The board has also announced plans to hold a series of international conferences to mobilize additional funding and coordinate efforts among stakeholders.
As the world watches, the success of the $2.45 billion plan will be a critical test of the international community’s commitment to resolving the Gaza crisis and fostering a path toward lasting peace in the region.
