Israel refuses to fund Board of Peace Gaza reconstruction

Damaged buildings in Gaza after the conflict 

JERUSALEM — Israel has informed the United States that it will not provide financial contributions to the Board of Peace’s Gaza reconstruction efforts, Security Cabinet Minister Zeev Elkin confirmed Friday. The declaration marks a clear divergence between Tel Aviv and the international coalition assembled by President Donald Trump to rebuild the war‑ravaged enclave.

Reasoning behind Israel’s refusal

“We did not give money to the Board of Peace,” Elkin said. “We were attacked, and there is no reason for us to finance reconstruction work in Gaza.” The minister framed Israel’s stance on the basis that the October 7 attacks that triggered the two‑year war placed responsibility for Gaza’s devastation on Hamas, not on Israel, and therefore Israel should not be expected to finance recovery.

The Board of Peace, established under the U.S. initiative, secured pledges totaling more than $7 billion from Gulf states and other partners at its inaugural Washington meeting. Elkin’s announcement underscores a diplomatic split between Israel and the international coalition coordinating reconstruction pledges and planning.

Divergence from the international coalition

The board’s membership includes Qatar, Saudi Arabia, the UAE, and Kuwait, which have committed billions to Gaza’s recovery while also acting as mediators alongside Egypt and Türkiye. Israel’s refusal to participate financially places the burden of rebuilding largely on the international community and Palestinian authorities, complicating coordination among donors, implementers, and security stakeholders.

Implications for reconstruction and governance

Gaza faces unprecedented destruction after Israel’s military campaign, with reconstruction needs estimated in the tens of billions of dollars. Israel’s decision not to contribute may affect discussions on governance arrangements, security guarantees, and oversight mechanisms for reconstruction projects. The position could also influence donor confidence, timelines for rebuilding, and negotiations over how aid is delivered and monitored.

Israeli officials say their refusal is consistent with the view that Hamas bears responsibility for the war’s devastation. Observers warn the stance may complicate efforts to align security arrangements with reconstruction plans and to ensure that funds are used for civilian recovery rather than military ends.

Next steps and diplomatic context

The Board of Peace and its member states will need to navigate Israel’s refusal while advancing pledges and operational plans. Coordination among the United States, regional donors, the Palestinian authorities, and international agencies will be critical to translating commitments into reconstruction on the ground. The diplomatic divergence also raises questions about how security, accountability, and reconstruction will be balanced in post‑conflict Gaza.

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