Gaza recovery plan: How Trump's $2.45 billion plan proposes to build a new Palestinian administration

The proposal, developed over about a year by members of the 28-country Board of Peace and the Palestinian technocratic government, covers infrastructure, housing, security, healthcare, education, digital services and economic development.

US President Donald Trump’s Board of Peace is set to unveil a six-month, $2.45 billion recovery plan for Gaza at a meeting of its members on Wednesday (September 23), outlining an ambitious roadmap for rebuilding the war-ravaged territory and establishing a new Palestinian administration, according to Axios.

The 66-project proposal covers temporary housing, debris removal, hospital rehabilitation, economic recovery, digital infrastructure and the deployment of a multinational security force, the news outlet stated.

The plan is the result of roughly a year of work involving members of the 28-country Board of Peace and officials from the Palestinian technocratic government, Axios reported.

A Board of Peace official reportedly described the proposal as an effort to establish “a government from nothing, an economy from shambles and a territory from disaster.”

The plan estimates that physical damage in Gaza stands at $35.2 billion, while full recovery and reconstruction could require about $71.4 billion over the next decade.

$1 billion for infrastructure

Infrastructure accounts for the largest share of the initial recovery package, at roughly $1 billion.

About $400 million is earmarked for temporary shelters for displaced Palestinians, while $275 million would be spent clearing rubble and unexploded ordnance.

Another $50 million is allocated for hospital rehabilitation and $30 million for repairing Gaza’s damaged road network.

The plan also calls for repairing border crossings, restoring electricity and water infrastructure and deploying 25,000 portable solar-power kits.

It proposes permanently filling tunnels beneath locations that are considered essential for priority reconstruction projects.

$885 million security package

Security-related projects account for about $885 million, making them another major component of the proposed recovery programme.

The plan proposes spending $275 million on a permanent hardened facility in Rafah capable of accommodating up to 5,000 personnel from the International Stabilization Force (ISF).

Another $140 million would be used to recruit, train, equip and deploy a multinational security contingent.

About $120 million would go toward mobilising 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 buy-back programme, offering incentives for Hamas and members of other armed groups to surrender weapons and ammunition for safe disposal.

The Palestinian technocratic government would eventually take over management 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.

Around $400 million would fund insulated caravans for displaced Palestinians currently living in tents.

Separately, the UAE would finance a pilot “Emirati Neighborhood” in Rafah, designed to house approximately 50,000 people with independent utilities.

The plan also allocates about $300 million for health, education and welfare programmes.

Digital infrastructure and economic revival

The proposal goes beyond emergency relief and physical reconstruction.

It includes plans for a digital ID system, digital payments and 4G connectivity, alongside electronic health and education systems.

Economic measures include grants to help restart small businesses and the creation of a new Gaza investment fund, with the broader aim of restarting the territory’s private sector.

The Board of Peace and Palestinian technocratic government have said recovery should be Palestinian-led and based on “Palestinian ownership,” according to Axios.

Funding and implementation hurdles

The proposed $2.45 billion package has not yet been fully funded. Board of Peace officials said they do not necessarily need the entire amount immediately and expect donor countries to contribute once political hurdles are cleared.

However, implementation depends on cooperation between Israel and Hamas, including progress on Hamas disarmament and the proposed ceasefire arrangements.

Representatives from 35 countries are expected at Wednesday’s briefing, where Jared Kushner, Steve Witkoff and other senior officials will present the proposal, Axios reported.

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