US is considering asking Israel to redirect $5 billion of withheld Palestinian tax revenues to fund Trump’s $70 billion Gaza reconstruction plan.
The proposal would channel part of the funds to a U.S.-backed transitional Gaza government and the remainder to the Palestinian Authority conditional on reforms.
Israel has withheld the taxes after the PA’s February 2025 reforms were deemed insufficient, accumulating an estimated $5 billion.
Nickolay Mladenov, Board of Peace envoy, said reconstruction planning is in advanced stages and a Palestinian technocrat committee would assume Gaza control after Hamas disarms.