The so-called “Peace Board” created by Donald Trump for the post-war Gaza rebuilding effort is facing major financial, legal and political difficulties despite ambitious initial promises.
Although Trump presented the organisation as a cornerstone of his new foreign policy agenda, four months after its launch, the official reconstruction fund remains empty, and no major rebuilding projects have begun in Gaza, according to the Financial Times.
Billions pledged but no funds released
The board reportedly sought around $1 billion from global leaders through “lifetime subscriptions”, while member states pledged a combined $7 billion for a large Gaza aid package. Trump also promised an additional $10 billion in US funding.
However, sources familiar with the organisation told the Financial Times that the official fund established through the World Bank and approved by the United Nations has not received a single dollar from donors.
Instead of using the World Bank mechanism, several donors allegedly transferred money directly into a JPMorgan bank account controlled by the board. The move has raised transparency concerns, as the World Bank fund is subject to international oversight and accountability requirements, unlike the private account.
Questions over transparency and accountability
A spokesperson for the board claimed donors had chosen “alternative funding options” and said financial details would be presented to the organisation’s executive board “when appropriate”.
So far, only limited amounts have reportedly been used. Morocco has provided around $20 million to support the office of Nikolay Mladenov, appointed as the “high representative” for post-war Gaza, as well as a Palestinian technocratic committee expected to oversee temporary governance in the territory.
The United Arab Emirates also pledged $100 million for the creation of a new police force in Gaza, although the programme has reportedly been frozen and the money remains unused.
Meanwhile, the US Department of State is considering redirecting around $1.2 billion from foreign aid programmes linked to the board’s activities, though none of the funds has yet been spent.
Congress raises concerns over legal status
The State Department is also examining a possible $50 million allocation for the board’s operating costs, but the funding has not yet been approved.
US officials have reportedly informed Congress that American funds will not be released until adequate financial controls and accountability mechanisms are established.
The organisation’s board has started tender procedures for security and rebuilding projects in Gaza, but no contracts have yet been awarded. Officials say delays are linked to the fact that Hamas has not been disarmed, which is viewed as a key condition for implementing the plan.
Legal uncertainty clouds Gaza rebuilding effort
Trump’s Gaza rebuilding proposal emerged after a ceasefire that ended two years of war between Israel and Hamas. The plan aimed to achieve three main goals: Hamas disarmament, Israeli troop withdrawal, and the reconstruction of Gaza.
However, little progress has reportedly been made on any of those objectives.
European diplomats have also raised concerns that the Peace Board was created as an alternative structure competing with the United Nations.
US lawmakers are questioning the organisation’s legal standing and whether it qualifies as an official international body eligible to receive American funding.
Democratic Senator Brian Schatz said Secretary of State Marco Rubio told him the board had a status similar to a UN agency. Trump, however, has reportedly described the body more like a personal administration structure, confusing even within the US government.
Further complications stem from Gaza’s uncertain legal status. A UN Security Council resolution reportedly describes the board as a “transitional administration” until the Palestinian Authority resumes control.
Business leaders and contractors have warned that the risks remain extremely high due to the absence of a clear political and legal framework.
Despite widespread publicity and billions in pledges, Trump’s Gaza rebuilding initiative remains largely theoretical, caught between funding gaps, political disputes and legal uncertainty.
Also read: Trump peace board raises questions over the role of the UN
For more videos and updates, check out our YouTube channel
