US Rejects Arab Leaders’ Alternative Gaza Reconstruction Plan

The U.S. administration has rejected a widely anticipated plan for Gaza’s reconstruction, which had been backed by Arab leaders, stating that President Trump remains committed to his own vision.

His proposal includes the displacement of Palestinian residents and the transformation of the territory into a U.S.-owned “riviera.”

The reconstruction plan, introduced by Egypt, calls for Hamas to relinquish control to an interim administration until a restructured Palestinian Authority can take over. Unlike Trump’s proposal, this plan would allow Gaza’s approximately 2 million residents to remain.

Israel has dismissed any possibility of the Palestinian Authority playing a role in Gaza.

The $53 billion initiative put forward by Arab nations aims to rebuild Gaza by 2030. The initial phase focuses on clearing unexploded ordnance and removing over 50 million tons of debris resulting from Israel’s airstrikes and military operations.

“The current proposal does not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance,” National Security Council spokesman Brian Hughes said in a statement Tuesday night.

“President Trump stands by his vision to rebuild Gaza free from Hamas. We look forward to further talks to bring peace and prosperity to the region.”

The ongoing ceasefire in Gaza, which has been in effect since January, is now uncertain following the expiration of its first phase on Saturday.

Israel has expressed support for what it describes as an alternative U.S.-led proposal to extend the truce and facilitate the release of hostages taken during Hamas’ attack on southern Israel on October 7, 2023, which sparked the war.

To pressure Hamas into accepting the agreement, Israel has restricted the entry of essential supplies, including food, fuel, and medicine, into Gaza. The Israeli government has also issued warnings of further consequences, heightening concerns about a potential resumption of hostilities.

During a summit unveiling a plan for Gaza’s future, Egyptian President Abdel Fattah el-Sissi emphasized that lasting peace would not be possible without the establishment of a Palestinian state.

Israel, however, has pledged to retain indefinite security control over both Gaza and the West Bank—territories it seized in the 1967 Mideast war and which Palestinians seek for their future state.