PALESTINE

Fri 17 Apr 2026 8:11 am - Jerusalem Time

Report: Trump seizes $17 billion in Gaza reconstruction funds for Israel

Media sources have revealed a controversial American move, where President Donald Trump redirected approximately $17 billion that had been allocated for the Gaza Strip, transferring it entirely to the Israeli side. This step comes in the context of the ongoing escalation against Iran, which began in late February, raising deep questions about the future of international funding designated for the reconstruction of the Strip, which has been exhausted by successive crises.

In shocking details, Nikolay Mladenov, who serves as the High Representative of the so-called 'Peace Council' affiliated with the American administration, confirmed that the financial resources allocated to Gaza have been completely depleted. Mladenov explained to the administrative committee overseeing the sector that the fund has become empty as a result of transferring these massive sums to support Israeli needs, which jeopardizes humanitarian and development projects.

Earlier, the administrative committee, headed by Ali Shaath, had received international pledges during the Davos conference to provide extensive financial aid covering approximately 350,000 Palestinian families. These commitments included disbursing cash to local dignitaries and providing 20,000 ready-made housing units to shelter those affected, but none of these commitments have been implemented, under the pretext of a lack of resources and the absence of a comprehensive political vision.

On the political front, sources revealed the behind-the-scenes pressures faced by Palestinian officials, where former British Prime Minister Tony Blair advised the necessity of limiting activity to humanitarian aspects only. However, this advice clashed with more stringent directives from Mladenov, who demanded a halt to all executive activities and humanitarian stances, leading to a state of complete paralysis within the institutions overseeing Gaza's affairs.

In light of this deteriorating reality, Palestinian factions demanded the return of officials to the Gaza Strip to confront the current challenges, but the decision remained contingent on the approval of the supreme leadership of the American Peace Council. This scene reflects the extent of direct hegemony over Palestinian decision-making, where powers are restricted and a political and financial siege is imposed, aiming to strip officials of their ability to take effective action to serve the population.

Nikolay Mladenov informed the administrative committee overseeing the Gaza Strip that the allocated fund had become completely empty after the money was transferred to Israel.

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Report: Trump seizes $17 billion in Gaza reconstruction funds for Israel

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