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Donors reluctant to fund US-led Gaza plan

February 5, 2026
in World
Donors reluctant to fund US-led Gaza plan

OCCUPIED JERUSALEM: The US has yet to secure funding commitments for its Gaza reconstruction plan as potential donors voice concerns that disagreements over Hamas disarmament could lead Israel to resume full-scale war in the enclave, sources told Reuters.

Hamas laying down its weapons is a key requirement under Donald Trump’s plan to end the Gaza war. It calls for Israel’s military to withdraw troops as Hamas disarms and for Gaza’s reconstruction to be overseen by a “Board of Peace” chaired by the US President.

Trump’s plan got a boost this week with the reopening of Gaza’s Rafah border crossing with Egypt. But sources close to Hamas say the group has yet to start talks on disarming, meant to precede the start of rebuilding Gaza’s destroyed cities. Two sources with direct knowledge of the Board’s planning said that countries were hesitant to commit funds to a rebuilding plan unveiled last month by Trump’s son-in-law, Jared Kushner, until Hamas disarms.

“Countries want to see the funding will go for reconstruction within demilitarized places, and not to throw the money into another war zone,” one of the sources said.

“If we pass that obstacle, then funding will not be an issue.”

NO DATE FOR FUNDING CONFERENCE, SOURCES SAY

Seven Western diplomats told Reuters that the funding holdup, which has not been previously reported, was also being driven by a demand by some potential donors for funds to be managed by the United Nations rather than the Board of Peace.

The funding delay leaves Gaza’s devastated population in limbo, unable to begin clearing rubble or rebuilding basic infrastructure, and feeds into worries among US allies that a fragile October truce, shaken by repeated Israeli attacks in Gaza, could break down and lead to a resumption of heavy fighting between Israel and Hamas militants.

Alongside governments, potential donors could also include private sector contributors, the diplomats and the two sources said. They estimated the potential rebuilding cost to be in the range of $100 billion.

That money would fund a “New Gaza” rebuilt from scratch to include seafront residential towers, data centres and industrial parks, Kushner said at the World Economic Forum in Davos on January 22.

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