Trump Board of Peace's official Gaza fund is empty

Lead

The Board of Peace, the body established by US President Donald Trump to oversee the administration and reconstruction of the Gaza Strip, is facing a significant funding shortfall. Despite member countries pledging billions of dollars, the board's official Gaza reconstruction fund—administered by the World Bank and endorsed by the United Nations—has received no cash, according to multiple reports. The shortfall threatens to derail the board's ambitious $70 billion reconstruction plan for the devastated enclave.

Coverage Comparison

The funding crisis has been reported across several outlets, with varying degrees of detail and emphasis. Al Jazeera and Dawn both highlighted the lack of cash in the official fund, with Dawn and France 24 reporting that the board has no money despite pledges totaling billions. Jerusalem Post added that the World Bank-administered fund has received zero dollars, citing four sources familiar with the matter, and noted that donations have instead been deposited directly into a JPMorgan account.

Al Jazeera's reporting emphasized that the funding shortfall underscores concerns about the board's structure, with critics viewing it as a means of sidestepping traditional international organizations. Dawn and France 24 focused on the failure to deliver on pledges, with France 24 noting that the fund was designed for the reconstruction and development phase, which has not yet been reached.

Jerusalem Post's coverage provided additional context on the board's financial arrangements, including the lack of independent transparency requirements for the JPMorgan account, and reported on the broader reconstruction landscape, including over 30 proposals for Gaza's future.

Key Claims

• The Board of Peace has no cash in its official Gaza reconstruction fund, despite member countries pledging billions of dollars. This was reported by Dawn and France 24, citing a source familiar with the board, and by Jerusalem Post, citing four sources and the Financial Times.
• The board has warned of a significant gap between funds pledged ($17 billion) and funds disbursed, according to Al Jazeera, citing a May 15 report to the UN Security Council.
• At least 910 people have been killed in Gaza since the ceasefire, according to the territory's health ministry, as reported by Dawn and France 24. Al Jazeera reported a figure of over 800 killed, also citing the health ministry.
• Israel continues to restrict humanitarian access to Gaza, with Al Jazeera reporting that Israeli military operations have continued despite the ceasefire.
• The board has received donations directly into a JPMorgan account, but there are no independent transparency requirements for this account, as reported by Jerusalem Post and France 24, citing the Financial Times.
• Morocco has contributed about $20 million to fund the office of Nickolay Mladenov, the board's high representative for postwar Gaza, and salaries for the Palestinian technocratic committee, according to Jerusalem Post.
• The United Arab Emirates contributed $100 million for training a new police force, but the funds are frozen, and the program has not started, as reported by Jerusalem Post.
• Over 30 proposals have been put forward for the reconstruction of the Gaza Strip, highlighting different visions for Gaza's urban and economic structures, according to an analysis by The Portland Trust, as reported by Jerusalem Post.
• 1.9 million Palestinians have been displaced into temporary housing or tents, and the World Health Organization has reported about 17,000 pest-related infections in Gaza, as reported by Jerusalem Post.
• The US is considering asking Israel to redirect some withheld Palestinian Authority tax funds toward the Board of Peace, according to five sources, as reported by Jerusalem Post. The proposal could deepen the PA's financial crisis, with the PA putting the amount of tax withheld at $5 billion.

Perspectives

Board of Peace officials: The board has stated that the World Bank fund was designed for the reconstruction and development phase, which has not yet been reached, explaining why no money has been deposited. The board has also said that it will report its financials to its own executive board "at a time deemed appropriate," and that contributors have opted to use other funding options, such as the JPMorgan account.

Experts and critics: Experts tracking international aid to Palestinians argue that the funding shortfall is not surprising, citing the board's controversial structure, a lack of a viable political horizon for a Palestinian state, and Israel's ongoing military expansion. Moath al-Amoudi, an expert in international aid, told Al Jazeera that donors are "terrified of engaging with a board that carries no political vision and treats Gaza merely as an American security protectorate." Critics view the board as a means of sidestepping traditional international organizations and aid groups.

Palestinian Authority: The PA, which has had no input into the board's plan, faces a deepening financial crisis due to Israel's withholding of tax revenues. Under the US proposal to redirect some funds, the PA could receive some money if it makes reforms, but the prospect of its own tax money being repurposed could further sideline it.