Washington is reportedly pondering asking Israel to switch half of the Palestinian Authority’s withheld tax revenues to beef up Donald Trump’s Board of Peace initiative for post-battle Gaza reconstruction.
The United States is pondering whether or no longer to ask Israel to redirect a chunk of tax revenues withheld from the Palestinian Authority to wait on finance President Donald Trump’s post-battle reconstruction idea for Gaza, Reuters reported citing sources conversant within the discussions.
Five sources told Reuters that the proposal stays under internal deliberation and that no formal search recordsdata from has yet been made to Israel. Three of the sources, identified as officials attentive to US-Israel consultations, said Washington became as soon as still assessing the political and simply implications of the switch.
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Two Palestinian sources conversant within the discussions said the proposal being explored would channel half of the withheld money to a US-backed transitional administration for Gaza, whereas one other piece would possibly maybe well well within the kill be released to the Palestinian Authority if it carries out governance and monetary reforms sought by Washington and Israel.
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The Palestinian Authority estimates that Israel is at this time withholding round USD 5 billion in tax revenues light on its behalf.
The proposal comes amid rising scrutiny of Trump’s “Board of Peace” initiative, a US-backed mechanism launched earlier this year to oversee Gaza’s reconstruction and transitional governance following the battle between Israel and Hamas. Analysts converse the idea envisions big-scale redevelopment projects in Gaza backed by Gulf funding, non-public funding and world donors.
The Board of Peace became as soon as formally launched in January after receiving backing through a UN Safety Council resolution tied to Trump’s broader Gaza peace framework. The initiative has since attracted billions of bucks in pledges from taking half worldwide locations and patrons for reconstruction and infrastructure projects within the enclave.
On the other hand, the probability of the usage of Palestinian tax revenues to fund the initiative with out pronounce participation from the Palestinian Authority, risks further sidelining the Western-backed administration, which is already grappling with a extreme monetary disaster within the occupied West Bank.
The Palestinian Authority exercises restricted self-rule in parts of the West Bank nevertheless lost management of Gaza to Hamas after the militant neighborhood seized the territory in 2007.
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Trump’s Gaza reconstruction initiative has confronted repeated setbacks collectively with Hamas’ refusal to disarm and endured Israeli navy operations despite a ceasefire settlement reached in October final year.
A spokesperson for Trump’s Board of Peace declined to observation abruptly on whether or no longer Palestinian tax revenues were into consideration for the project. On the other hand, a Board first payment said all stakeholders had been impressed to make contributions resources toward the estimated USD 70 billion rebuilding effort.
“That involves the Palestinian Authority and Israel. There would possibly maybe be no longer any longer any question that money held in a bank does nothing to further the President’s 20-Point Idea,” the first payment said.
Beneath longstanding preparations, Israel collects import taxes on behalf of the Palestinian Authority and is anticipated to switch the revenue gradually. The Palestinian Authority depends carefully on these funds to pay public sector salaries and protect needed companies and products.
The sources didn’t specify how great of the withheld money Washington would possibly maybe well well additionally simply watch to redirect under the proposal.
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Washington and Israel web over and over pressed the Palestinian Authority to total payments to Palestinian prisoners and households of those killed by Israeli forces, arguing that the gadget incentivises violence. Palestinians defend the payments as welfare beef up for households littered with the wrestle.
In February 2025, the PA introduced reforms to the price gadget under US tension, nevertheless Washington reportedly regarded as the changes inadequate. Israel as a result of this reality endured withholding the funds, deepening the Palestinian Authority’s monetary difficulties and forcing wage cuts for public staff within the West Bank.
Israel later permitted a US invitation to affix the Board of Peace, whereas the Palestinian Authority became as soon as no longer invited to rob half.
Beneath Trump’s broader post-battle framework, governance in Gaza would within the kill be transferred from Hamas to a technocratic body recognized because the Nationwide Committee for the Administration of Gaza, contingent on Hamas surrendering its weapons.
Nickolay Mladenov, Trump’s Board of Peace envoy for Gaza, said right through a press convention in Jerusalem on Wednesday that reconstruction planning became as soon as in developed phases.
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”We’re doing it sector by sector. We’re costing things. We’re coordinating with donors and we’re ready to birth out up in earnest as soon as the necessities enable it,” Mladenov said, with out pointing out the tax deliver.
With inputs from companies
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Could perchance maybe 15, 2026, 22:30 IST
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