Gaza recovery plan: How Trump’s $2.45 billion plan proposes to build a new Palestinian Authority | Today’s news
US President Donald Trump’s peace council is set to unveil a six-month, $2.45 billion Gaza reconstruction plan at a meeting of its members on Wednesday (Sept. 23), outlining an ambitious plan to rebuild the war-torn territory and establish a new Palestinian Authority, Axios reports.
The 66-project proposal includes temporary housing, debris removal, hospital rehabilitation, economic recovery, digital infrastructure and the deployment of multinational security forces, the news site said.
The plan is the result of roughly a year of work involving members of the 28-member peace committee and representatives of the Palestinian technocratic government, Axios reported.
A Board of Peace official reportedly described the proposal as an effort to create “a government out of nothing, an economy out of rubble, and a territory before disaster”.
The plan estimates physical damage in Gaza at $35.2 billion, while full recovery and reconstruction could require about $71.4 billion over the next decade.
$1 billion for infrastructure
Infrastructure has the largest share of the initial recovery package, roughly $1 billion.
About $400 million is earmarked for temporary shelters for displaced Palestinians, while $275 million would be spent on clearing rubble and unexploded ordnance.
Another $50 million is allocated to rebuilding the hospital and $30 million to repair the damaged road network in Gaza.
The plan also calls for repairing border crossings, restoring electricity and water infrastructure, and deploying 25,000 portable solar arrays.
It proposes the permanent filling of tunnels under sites deemed necessary for priority reconstruction projects.
$885 million security package
Security-related projects account for approximately $885 million, making them the next major component of the proposed recovery program.
The plan proposes spending $275 million on a permanent fortified facility in Rafah capable of housing up to 5,000 International Stabilization Force (ISF) personnel.
Another $140 million would be used to recruit, train, equip and deploy a multinational security contingent.
About $120 million would go to mobilize the Palestinian police. Thousands of Palestinians from Gaza have reportedly been selected and vetted for the proposed police force, although Israel has blocked them from leaving Gaza for training in Egypt, according to Axios.
The plan also includes a $20 million weapons buyback program that offers incentives for Hamas and members of other armed groups to turn in weapons and ammunition for safe disposal.
The Palestinian technocratic government would eventually take over control of Gaza’s crossings with Israel and Egypt for both passengers and goods.
Temporary homes for displaced Palestinians
Moving Palestinians out of tents is identified as one of the plan’s immediate priorities.
About $400 million would fund isolated caravans for displaced Palestinians who currently live in tents.
Separately, the UAE would fund a pilot “Emirati Neighborhood” in Rafah, designed to house around 50,000 people with independent services.
The plan also allocates about $300 million to health, education and social programs.
Digital infrastructure and economic recovery
The proposal goes beyond emergency relief and physical reconstruction.
It includes plans for a digital identification system, digital payments and 4G connectivity, along with electronic health and education systems.
Economic measures include grants to help restart small businesses and the creation of a new investment fund for Gaza, with the broader goal of restarting the territory’s private sector.
The Peace Council and the Palestinian Technocratic Government have said the rebuilding should be Palestinian-led and based on “Palestinian ownership,” according to Axios.
Barriers to financing and implementation
The proposed $2.45 billion package has not yet been fully funded. Peace of Peace officials said they do not necessarily need the full amount immediately and expect donor countries to contribute once political obstacles are cleared.
However, implementation depends on cooperation between Israel and Hamas, including progress on Hamas disarmament and proposed cease-fire agreements.
Representatives from 35 countries are expected at a briefing Wednesday, where Jared Kushner, Steve Witkoff and other senior officials will present the proposal, Axios reported.
Read also | Why 2026 US Midterm Elections Are Critical for Trump Amid Iran War Crisis
