Donald Trump’s Board of Peace announced a $2.45bn package to rebuild Gaza on the sidelines of the United Nations General Assembly in New York on Tuesday.

The board said the funds would target housing, schools, water and power networks, and small‑business support, aiming to jump‑start the enclave’s economy after months of intense fighting. "Rebuilding Gaza is a moral imperative and an economic opportunity," a board spokesperson told reporters.

"Rebuilding Gaza is a moral imperative and an economic opportunity," a board spokesperson said.

According to the BBC, the plan will be administered through a consortium of international NGOs and UN agencies, with oversight mechanisms intended to ensure that money reaches civilian projects rather than militant groups.

Plan specifics and funding channels

The $2.45bn is to be disbursed over a three‑year period. Initial allocations will focus on emergency shelter and the repair of critical water pipelines, which the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) says were damaged in over 70% of Gaza’s neighbourhoods during the latest conflict.

Subsequent tranches are earmarked for restoring electricity grids, rebuilding schools damaged in air strikes, and establishing micro‑finance schemes for small traders. The board indicated that a portion of the money will be matched by contributions from European donors, though exact amounts were not disclosed.

Regional backdrop and previous aid pledges

Gaza’s infrastructure has been repeatedly battered since 2007, with the most recent war leaving thousands of homes destroyed and the health system on the brink of collapse. The United Nations has estimated that reconstruction could cost between $10bn and $15bn, far exceeding the board’s offer.

The United States, under previous administrations, pledged billions for Gaza’s recovery, but disbursement has been slow and often tied to political conditions. Trump’s private initiative marks the first major private‑sector effort of this scale, according to analysts at the Brookings Institution.

International and local reactions

Palestinian authorities welcomed the announcement but cautioned that any plan must be coordinated with the Hamas‑run administration in Gaza to avoid duplication of effort. "We need guarantees that the aid will reach the people who need it most," a senior official of the Palestinian Ministry of Finance told the BBC.

Israel’s foreign ministry expressed tentative support, noting that rebuilding could stabilise the border region, but warned that security vetting would be essential. "Any reconstruction effort must not strengthen hostile entities," a spokesperson said.

European Union representatives described the proposal as "a welcome contribution" but called for transparent monitoring. Humanitarian NGOs echoed similar concerns, urging that the plan include robust audit mechanisms.

Implications and next steps

If the board secures the pledged funds, the first construction contracts could be awarded by the end of the year, with the United Nations Development Programme slated to co‑ordinate on‑the‑ground logistics.

The initiative arrives at a time when donor fatigue is setting in, and the broader international community is still negotiating a lasting ceasefire. Whether the $2.45bn will catalyse a broader funding surge or remain a standalone effort will become clearer as the board engages with UN agencies and regional partners over the coming weeks.