Gaza is in a state of grave uncertainty more than seven months after Donald Trump brokered the ceasefire agreement… no reconstruction process has begun, the so-called “Peace Board” is facing a lack of funds, while the Palestinian technocrats elected to administer the territory have been sidelined in Egypt.
In a report submitted to the UN Security Council on May 15, the Peace Board said the “key obstacle” to implementing Trump’s Gaza plan is Hamas’s refusal to lay down its arms and relinquish control of the territory. However, several people familiar with the situation said the lack of funding could seriously jeopardize the entire project. Nine countries pledged $7 billion in the first aid package for Gaza during the inaugural meeting of the Peace Board, chaired by Trump. But according to sources for The Guardian, only the United Arab Emirates and Morocco have transferred funds so far.
The group has received just $23 million for its operations, as well as another $100 million to create a future Palestinian police force. In total, this represents just $1.75 for every $100 pledged. The UN has estimated that rebuilding Gaza will cost over $70 billion and take decades.
Five sources familiar with the organization told The Guardian that some countries that initially pledged funding are now reluctant to pay, due to a lack of diplomatic progress and the stagnant situation on the ground. “Countries are hesitant to give their share,” said a diplomat involved in international negotiations for Gaza. Another source added that the war with Iran has served as an excuse for delays in payments. “Nobody with money and resources wants to work with the Peace Board,” said another person close to the project. “The conflict with Iran has given donors a reason not to pay.”
Bulgarian diplomat Nickolay Mladenov, tasked with implementing Trump’s vision for Gaza as “high representative,” admitted last week that Palestinians in Gaza have been disappointed by the international community.
“The door to Gaza’s future remains closed. This is not what the Palestinians were promised and this is not what they deserve,” Mladenov said in Jerusalem. He added that the current impasse also threatens Israel’s long-term security. In his report to the UN, Mladenov called on donor countries to provide the funds “without delay,” stressing that the funds promised but not yet disbursed were the difference between a plan on paper and real assistance to the people of Gaza. A senior UN official denied there was an urgent funding crisis and insisted that donors remained committed. He said Morocco, Bahrain and the Emirates had contributed to the operational costs and training of a Palestinian police force.
However, another source for The Guardian denied that Bahrain had transferred any money. Trump also promised $10 billion in US funding, but those funds have yet to be disbursed. Board officials have not yet made a formal request for the money, which is being administered by Jeremy Lewin, a US State Department official.
Aryeh Lightstone, a key Middle East adviser to the Trump administration, is the main person responsible for securing funding for the Board. For months, he has been moving between Tel Aviv, Abu Dhabi and Washington to drum up support for Trump’s plan and discuss Gaza’s humanitarian needs with international organizations. Meanwhile, part of the Board’s expenses also includes salaries for 12 Palestinians selected to run the planned civil administration for Gaza, who are currently in Egypt awaiting security guarantees and diplomatic clearance to enter the territory. According to sources, they are paid an average of $16,000 to $17,000 per month, while Mladenov is expected to receive about $400,000 per year for his leadership role. However, the National Committee for the Administration of Gaza has had no real impact on the lives of Palestinians inside the territory.
“Not a single bottle of water has entered Gaza under the flag of this committee since January 2026,” said a source close to the group. When the ceasefire agreement was reached last October, critics warned that it was too vague on sensitive issues such as reconstruction, governance and security in Gaza. The agreement called for the creation of an international security force, reconstruction of the territory, increased humanitarian aid, the disarmament of Hamas and the complete withdrawal of Israeli forces.
But more than half a year later, there is no international force in place and no concrete plan to create one. Israeli forces continue to control over half of Gaza and restrict the entry of vital aid such as food and medicine.
Most survivors still live in makeshift camps and in dire unsanitary conditions. Hunger is widespread, schools remain closed, drinking water is scarce, and the health system is crippled by damage, staffing, and supplies. Meanwhile, Trump and his aides have talked about a very different future for Gaza, describing it as a modern tourism and trade hub with airports, seaports, and “smart cities” run by artificial intelligence. “Let’s plan for catastrophic success,” Jared Kushner told donors in Davos in January. Yet no major reconstruction projects have yet begun, even in areas under full Israeli military control. Several companies have submitted bids for rubble clearance, security, and camp construction, but have yet to be awarded contracts.
“Nothing has happened. They haven’t even started removing the rubble,” another source said. Mladenov acknowledged that both sides had violated the ceasefire, but continued to blame Hamas for the lack of progress, insisting that the group must lay down its weapons to pave the way for reconstruction.
At stake is the future of more than 2 million Palestinians in Gaza, most of whom are displaced and struggling to rebuild their lives after a war that has been described as genocide by a UN commission, human rights groups and genocide scholars. A source close to the Board warned that even if Hamas were to agree to disarm, the organization would not be able to provide aid on the scale required. A senior Board official disputed that assessment.
“We are more than prepared and we will not fail.” (The Guardian)