Trump board proposes USD 2.45 bn six-month Gaza recovery plan

Gaza plan includes temporary shelters, hospital repairs, security and economic recovery.

Washington: US President Donald Trump’s Board of Peace will unveil a six-month, USD 2.45 billion recovery plan for Gaza at a meeting of its members on Wednesday, September 23, Axios reported.

The 66-project programme focuses on housing, infrastructure, healthcare, economic recovery and security. It was developed over the past year by officials from the Board of Peace and the Palestinian technocratic government.

The proposal estimates physical damage in Gaza at USD 35.2 billion and puts the cost of full recovery and reconstruction at about USD 71.4 billion over the next decade.

Housing and infrastructure

About USD 1 billion of the initial programme would go towards infrastructure projects, including USD 400 million for temporary shelters, USD 275 million for rubble and unexploded ordnance removal, USD 50 million for hospital rehabilitation and USD 30 million for road repairs.

The plan also proposes restoring electricity and water infrastructure, repairing border crossings and deploying 25,000 portable solar-power kits. Tunnels beneath sites earmarked for priority reconstruction would also be permanently filled.

The UAE would separately finance a pilot “Emirati Neighborhood” in Rafah designed to accommodate 50,000 Palestinians currently living in tents, with independent utilities.

Security and administration

Security-related projects account for about USD 885 million.

The plan proposes USD 275 million for a permanent facility in Rafah capable of supporting 5,000 personnel from the International Stabilization Force (ISF). Another USD 140 million would cover the recruitment, training, equipment and deployment of a multinational security contingent.

A further USD 120 million would support a new Palestinian police force. Thousands of Palestinians have reportedly been selected and vetted for the force but have been prevented from leaving Gaza for training in Egypt.

The proposal also includes a USD 20 million weapons buy-back programme to encourage Hamas members and members of other armed groups to surrender weapons and ammunition for safe disposal.

The Palestinian technocratic government would eventually take responsibility for Gaza’s crossings with Israel and Egypt, including the movement of people and goods.

Economic recovery

The programme includes digital identification and payment systems, 4G connectivity, electronic health and education services, grants for small businesses and a new Gaza investment fund.

About USD 300 million would be directed towards health, education and welfare programmes. The Board of Peace and the Palestinian technocratic government said the recovery process should be Palestinian-led and based on “Palestinian ownership”.

The programme faces funding and political challenges. The full USD 2.45 billion required for the initial phase has not yet been secured.

Implementation also depends on cooperation from Israel and Hamas. Israel has agreed in principle to aspects of the proposal but has not begun implementing them, while Hamas has agreed in principle to disarm, although the proposed process has yet to be tested.

Representatives from 35 countries were expected to attend Wednesday’s briefing, including representatives of the European Union and several of its member states. Trump’s senior adviser Jared Kushner and White House envoy Steve Witkoff were scheduled to address the meeting.

The Board of Peace was proposed by Trump in September 2025 and formally launched in January 2026 to oversee Gaza’s post-war governance, reconstruction and security. Trump chairs the board, while former UN envoy Nickolay Mladenov serves as its High Representative.

The board comprises 27 member countries, and the UN Security Council has authorised it to administer Gaza until December 31, 2027.