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US may redirect Palestinian tax funds to Trump Gaza plan

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US may redirect Palestinian tax funds to Trump Gaza plan

U.S. officials are considering a proposal that would see Israel redirect withheld Palestinian tax revenues toward Donald Trump’s post-war reconstruction plan for Gaza.

Axar.az reports, citing Reuters, the funds, estimated by the Palestinian Authority at around $5 billion, are collected by Israel on behalf of the Authority but have been withheld amid ongoing disputes.

Under the proposal, some of the money could be allocated to Trump’s “Board of Peace” to help finance Gaza’s reconstruction, while additional portions could potentially be released to the Palestinian Authority if reforms are implemented, the sources said.

A Board of Peace official said the initiative is aimed at mobilizing available resources for rebuilding efforts. “That includes the Palestinian Authority and Israel,” the official said. “There is no doubt that money held in a bank does nothing to further the President’s 20-Point Plan.”

The proposal remains under discussion and has not been formally approved or submitted to Israel, according to U.S. officials cited in the report.

The idea comes amid deep financial strain on the Palestinian Authority, which relies heavily on tax transfers to fund public services and salaries in the West Bank.

Date
2026.05.16 / 10:30
Author
Yusif Güney
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