Trump Gaza reconstruction plan stalls amid 17 billion funding shortfal

Last Updated:April 11, 2026, 1:17 PM IST

A source familiar with the matter said Iran conflict has further disrupted funding flows, worsening an already strained situation.

A drone view shows the destruction in a residential neighbourhood, following the withdrawal of the Israeli forces from the area, amid a ceasefire between Israel and Hamas in Gaza, in Gaza City. (IMAGE: REUTERS)

US President Donald Trump’s ambitious plan to reshape post-war Gaza is facing a severe funding crisis, with only a fraction of the $17 billion pledged by international donors actually materialising, Reuters reported, citing sources.

The shortfall has stalled the work of the US-backed Board of Peace, which was tasked with overseeing reconstruction and governance efforts in the war-hit enclave. The funding gap has also hindered the deployment of the proposed National Committee for the Administration of Gaza (NCAG), a technocratic body meant to take over governance from Hamas.

Less Than $1 Billion Received Despite $17 Billion Pledges

Despite earlier commitments from multiple countries, only the United Arab Emirates, Morocco, and the United States have contributed funds so far, with total inflows reportedly under $1 billion, the Reuters report mentioned. One source directly familiar with the matter said the ongoing conflict involving Iran has further disrupted funding flows, worsening an already strained situation.

A Palestinian official indicated that the Board of Peace had informed factions, including Hamas, that the NCAG cannot currently enter Gaza due to a lack of funds. “No money is currently available,” the official quoted board envoy Nickolay Mladenov as saying.

The NCAG, led by Palestinian technocrat Ali Shaath, was expected to manage Gaza’s ministries and security apparatus following the disarmament of Hamas and the withdrawal of Israeli forces. However, the committee remains stuck in Cairo amid uncertainty over both funding and security conditions.

The financial bottleneck underscores broader challenges that Trump’s peace efforts are facing, which also include stalled negotiations over Hamas’ disarmament and Israel’s military presence. With reconstruction costs estimated at around $70 billion, the funding crunch threatens to derail plans for Gaza’s recovery and risks prolonging instability in the region.

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