The official fund created to finance the Peace Council, an initiative of U.S. President Donald Trump, aimed at rebuilding Gaza, remains without a single dollar deposited, despite promises totaling US$ 17 billion.
The Financial Times reports that the structure is described as stuck in a legal and political limbo, which prevents the execution of projects in the Palestinian territory.
Launched in January with heavy media exposure, the Peace Council was presented by Trump as one of the most consequential international organizations ever created.
Created with the mission to coordinate the reconstruction of Gaza after two years of war, the Peace Council had three central objectives: disarm Hamas, ensure the withdrawal of Israeli forces, and begin the enclave’s reconstruction.
According to the newspaper, member countries pledged a package of US$ 7 billion for “relief” in Gaza, while the American government promised another US$ 10 billion.
Four months later, however, the fund administered by the World Bank, endorsed by the UN, received “zero dollars,” according to four sources interviewed by the report.
In practice, contributions have been made directly to a Peace Council account at JPMorgan, outside the World Bank’s formal mechanism, which reduces transparency requirements.
Small installments — such as about US$ 3 million from Morocco and US$ 20 million from the United Arab Emirates — have been used to fund the office of Special Envoy Nickolay Mladenov and salaries of a Palestinian technical committee created to administer Gaza.
A US$ 100 million contribution from the Emirates to train a new police force is frozen, and the US$ 1.2 billion that the U.S. State Department intends to reallocate to projects tied to the Council’s agenda has not yet been spent.
Meanwhile, the State Department is discussing releasing around US$ 50 million directly to the Peace Council to cover operating costs, but ties the transfer to implementing financial controls and governance systems adequate for the use of American public funds.
A congressional aide interviewed by the FT said that “not a single dollar” is being managed by the Council and that there is no intention, for now, to transfer the management of these resources to the entity.
