The United States is considering asking Israel to transfer part of the tax revenues withheld from the Palestinian Authority (PA) to Donald Trump’s Board of Peace to help fund Gaza’s post-war reconstruction, according to five sources familiar with the discussions.
Three of the sources, officials aware of ongoing U.S.-Israeli deliberations, said Washington has yet to decide whether it will formally request the transfer. Two Palestinian sources familiar with the matter said the proposal would see some of the funds channelled to a U.S.-backed transitional administration in Gaza, while the remainder would go to the PA on the condition that reforms are implemented.
The PA says Israel is withholding around $5 billion in tax revenues.
The possibility of Palestinian tax money being used to finance Trump’s Gaza initiative without consultation with the Palestinian leadership could further marginalise the Western-backed PA, particularly as the freezing of funds has fuelled a financial crisis in the occupied West Bank.
The PA maintains limited self-rule in the West Bank but has had no authority in Gaza since Hamas expelled it following a brief internal conflict in 2007.
Trump’s Gaza reconstruction proposal, intended for the territory devastated by more than two years of war, has stalled amidst Hamas’ refusal to disarm and continued Israeli military operations that have weakened an October ceasefire agreement.
The Board of Peace declined to comment directly on whether the use of Palestinian tax funds was under consideration.
However, a Board official said all parties had been encouraged to contribute resources towards Trump’s estimated $70 billion rebuilding plan.
“That includes the Palestinian Authority and Israel. There is no doubt that money held in a bank does nothing to further the President’s 20-Point Plan,” the official said, appearing to refer to the frozen PA tax revenues.
Under longstanding agreements, Israel collects taxes on imported goods on behalf of the PA and is expected to transfer the funds regularly. The PA relies heavily on this revenue to pay public sector salaries and maintain essential services.
The sources did not specify how much of the withheld money Washington may seek to redirect to the Board.
Neither the U.S. State Department, the Israeli government nor the Palestinian Authority immediately commented on the matter.
Washington and Israel have repeatedly pressured the PA to end payments made to Palestinians imprisoned by Israel and to families of those killed by Israeli forces, arguing that the policy incentivises violence. Palestinians, however, regard the payments as social support for individuals they consider national figures.
In February 2025, the PA announced reforms to the payment system in response to U.S. demands, but Washington said the measures were insufficient. Israel subsequently continued withholding the tax revenues, which Palestinian officials say now total more than half of the PA’s annual budget.
The financial strain has forced the PA to reduce salaries for thousands of civil servants across the West Bank.
Israel has agreed to participate in the Board of Peace initiative, while the PA was not invited to join.
Under Trump’s proposed framework, a body of Palestinian technocrats known as the National Committee for the Administration of Gaza would assume control of the enclave from Hamas once the group disarms.
Speaking in Jerusalem on Wednesday, Trump’s Board of Peace envoy for Gaza, Nickolay Mladenov, said reconstruction preparations were well advanced.
“We’re doing it sector by sector. We’re costing things. We’re coordinating with donors and we’re ready to begin in earnest once the conditions allow it,” Mladenov said, without referring to the tax revenue issue.
The UN's International Maritime Organization has paused escort operations through the Strait of Hormuz after a cargo ship was reportedly attacked near...
The United Nations' top human rights official has called for independent investigations into deaths in U.S. immigration detention facilities, citing a...
Tens of thousands of people are still unaccounted for after two powerful earthquakes struck Venezuela. At least 589 people have been confirmed dead a...
An aircraft roughly the size of a car crashed into Beijing's tallest skyscraper on Friday evening, triggering a major emergency response and a heavy p...
Montenegrin police, working alongside the United States' Federal Bureau of Investigation, have arrested an Iranian national accused of carrying out a ...
The UN's International Maritime Organization has paused escort operations through the Strait of Hormuz after a cargo ship was reportedly attacked near Oman, with two U.S. officials accusing Iran of the attack.
The United Nations' top human rights official has called for independent investigations into deaths in U.S. immigration detention facilities, citing a rise in fatalities among people held by U.S. Immigration and Customs Enforcement (ICE).
Tens of thousands of people are still unaccounted for after two powerful earthquakes struck Venezuela. At least 589 people have been confirmed dead and hundreds are believed to be trapped under rubble, as emergency crews and international rescue teams race to respond.
An aircraft roughly the size of a car crashed into Beijing's tallest skyscraper on Friday evening, triggering a major emergency response and a heavy police presence as authorities sealed off the area and gave no immediate explanation for the incident.
An earthquake of magnitude 6.9 struck Japan's northeast coast on Thursday, but no tsunami warning was issued, no injuries were immediately reported and no irregularities were found at nuclear facilities, the authorities said.
As Western Europe battles a deadly heatwave that has shattered temperature records, disrupted transport and power supplies, and forced the closure of schools and cultural landmarks, attention is turning to whether El Niño is playing a role in the extreme conditions.
The U.S. Senate rejected a resolution on Wednesday that would have directed President Donald Trump to remove U.S. forces from hostilities against Iran unless Congress formally authorised military action.
The Kremlin has denied a Wall Street Journal report claiming Moscow is pressuring Belarus to support an expanded Russian military campaign in Ukraine.
Tens of thousands of people are still unaccounted for after two powerful earthquakes struck Venezuela. At least 589 people have been confirmed dead and hundreds are believed to be trapped under rubble, as emergency crews and international rescue teams race to respond.
The United Nations' top human rights official has called for independent investigations into deaths in U.S. immigration detention facilities, citing a rise in fatalities among people held by U.S. Immigration and Customs Enforcement (ICE).
An aircraft roughly the size of a car crashed into Beijing's tallest skyscraper on Friday evening, triggering a major emergency response and a heavy police presence as authorities sealed off the area and gave no immediate explanation for the incident.
Montenegrin police, working alongside the United States' Federal Bureau of Investigation, have arrested an Iranian national accused of carrying out a series of cyberattacks that allegedly caused an estimated $3.4 billion in damage to U.S. infrastructure.
South Korea is set to dramatically expand its unmanned warfare capabilities, with plans to integrate drones across all branches of its military as tensions with North Korea continue to shape the country's defence strategy.
Fertiliser shipments through the Strait of Hormuz have begun to recover following an interim U.S.–Iran agreement aimed at stabilising the waterway after months of disruption during conflict, industry data shows.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment