Trump's Board of Peace proposes $2.45 billion recovery plan for Gaza

Six-month recovery framework

The Board of Peace, chaired by US President Donald Trump, presented a six-month reconstruction and governance plan for the Gaza Strip on 23 September 2026 in New York. Unveiled during a meeting on the sidelines of the United Nations General Assembly, the proposal allocates $2.45 billion (roughly €2.15 billion) across 66 initial projects. US special envoys Steve Witkoff and Jared Kushner attended the session alongside delegates from member countries and interested governments. The framework focuses on emergency housing, hospital repairs, rubble clearance, transport rehabilitation, and economic recovery measures. Former UK prime minister Tony Blair, who sits on the board's executive panel, emphasized the need for practical assistance.

Palestinians in Gaza don't need a slogan; they need a solution.

Funding allocations and infrastructure targets

Budget documents indicate that infrastructure constitutes the largest component of the package, receiving $1 billion. Within that envelope, approximately $400 million is assigned to construct insulated housing units to relocate displaced families from tent encampments. The United Arab Emirates would fund a pilot development known as the Emirati Neighborhood in the Rafah area, designed to accommodate 50,000 residents. Security initiatives represent about $885 million of the total budget, including $275 million to establish a permanent fortified facility in Rafah. Planners earmarked $275 million for unexploded ordnance and debris removal, $50 million for hospital rehabilitation, and $30 million to repair damaged roadways. The proposal also calls for deploying 25,000 portable solar power kits, repairing border crossings, restoring water and electricity grids, and filling tunnels under priority construction sites.

Diplomatic and security hurdles

Nickolay Mladenov, the Board of Peace high representative for Gaza, called on international partners to back the strategy while acknowledging political complications. Negotiations with Israel remain delicate ahead of upcoming national elections, though Mladenov reported steady progress. The broader peace framework requires the disarmament of Hamas, the withdrawal of Israeli forces, and the deployment of a multinational peacekeeping force alongside a new Palestinian police service. Hamas accepted the disarmament terms outlined in late July 2026, but Israeli Prime Minister Benjamin Netanyahu rejected the proposal, insisting on the elimination of all weapons in Gaza. At the United Nations General Assembly, French President Emmanuel Macron, Turkish President Recep Tayyip Erdogan, and Austrian President Alexander Van der Bellen criticized Israel over the humanitarian situation in the enclave.

Given the complexities that we are dealing with, I think we are making progress, slowly and steadily.

Extent of destruction and future requirements

The reconstruction initiative addresses widespread destruction across the enclave, where United Nations assessments found that 84% of all structures were damaged or destroyed by October 2025. Although a US-mediated ceasefire took effect on 10 October 2025, Israeli military forces still occupy roughly 60% of the territory and conduct regular strikes. Health officials in Gaza report that over 1,300 Palestinians have been killed since the truce began, while the Israeli military confirmed four soldier deaths. The Board of Peace estimated total physical damage in Gaza at $35.2 billion, with medium-term recovery requiring that amount and long-term rebuilding needing $71.4 billion over the next decade.