Board of Peace unveils $2.45bn Gaza reconstruction plan as conflict persists

The U.S.-backed Board of Peace, an initiative led by President Donald Trump, has unveiled a six-month, $2.45 billion plan aimed at initiating reconstruction and governance in Gaza. Announced at a meeting held on the sidelines of the UN General Assembly, the blueprint outlines 66 projects focused on critical infrastructure, education, and health, forming the initial phase of a broader recovery effort estimated to cost $35.2 billion in the medium term and over $71 billion in the next decade. The proposal is primarily directed at potential international donors who would fund these efforts.

This reconstruction initiative emerges as a ceasefire agreement, which originally took effect on October 10, 2025, faces significant challenges and has largely stalled. The original peace plan envisioned Israeli military withdrawals, the disarmament of Hamas, the deployment of an international peacekeeping force, and the establishment of a new, apolitical Palestinian government. However, these conditions have not been met, with reports indicating continued Israeli military control over approximately 60% of Gaza and no disarmament by Hamas.

Amidst these ongoing challenges, humanitarian conditions in Gaza remain critical, marked by widespread destruction, persistent civilian casualties, and restrictions on aid. Recent incidents include a residential building collapse in Gaza City on September 16, 2026, resulting in 21 fatalities, and continued settler violence in the West Bank. United Nations officials have expressed concern that the viability of a two-state solution is increasingly at risk.