Trump-Founded Council Proposes $2.45 Billion Gaza Reconstruction Plan

The "Peace Council," an organization founded by former U.S. President Donald Trump, is set to unveil a preliminary six-month reconstruction plan for the Gaza Strip valued at $2.45 billion. The plan, detailed by Israel's Channel 12, encompasses 66 projects aimed at guiding the initial phase of Gaza's post-war rebuilding and governance. Key initiatives include providing temporary housing, clearing rubble, rehabilitating hospitals, and revitalizing the economy, potentially with the deployment of a multinational security force.

The proposal, developed over a year with input from the 28-member Peace Council and the technocratic Palestinian government, aims to "rebuild a government from scratch, an economy from the rubble, and a sector from the heart of the disaster," according to a Peace Council official.

Implementation hinges on cooperation between Israel and Hamas. While the Israeli government has "in principle" agreed to some previously discussed elements, it has not begun implementation, reportedly due to domestic political considerations. Hamas has also "in principle" agreed to disarm, but this has not been tested, particularly as Israel has not agreed to a 14-day ceasefire prerequisite for disarmament. The Peace Council hopes upcoming Israeli elections on October 27 and the subsequent formation of a new government will facilitate the reconstruction process, warning that election uncertainty could lead to political deadlock.

The plan estimates material damage in Gaza at $35.2 billion, with full reconstruction costs projected at $71.4 billion over the next decade. The 66 projects are divided into six areas: infrastructure, human development, economic acceleration, digital transformation, law, and peace and security. Infrastructure receives the largest initial funding share at $1 billion, including $400 million for temporary housing and $275 million for rubble removal.

Security projects are allocated $885 million, including funds for a fortified compound in Rafah for an international stabilization force and for training a Palestinian police force. Israel has reportedly blocked selected Gazans from leaving for training in Egypt. The plan also includes a $20 million program to incentivize Hamas and other militants to surrender weapons.

Urgent priorities include providing more suitable housing for displaced Palestinians, with $400 million for mobile units and a separate UAE-funded "Emirati Quarter" in Rafah for 50,000 people. The plan also allocates $300 million for health, education, and social welfare programs. It further aims to establish foundations for a functional Palestinian administration and private sector, including digital identification, 4G networks, and grants for small businesses.

A major challenge is securing the full $2.45 billion, though Peace Council officials believe donor nations will contribute once political obstacles are removed. Representatives from 35 countries, the EU, and former UK Prime Minister Tony Blair are expected at the council's meeting, alongside figures like Jared Kushner and Palestinian Prime Minister Ali Shaath.