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Trump Scales Back Gaza Reconstruction Plan to Limited Rafah Project

July 18, 2026
in Sunna Files Observatory
Reading Time: 10 mins read
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A Gaza reconstruction plan backed by US President Donald Trump’s Board of Peace has been sharply reduced from a comprehensive programme to rebuild the entire enclave to a limited pilot project in southern Gaza, The Guardian has reported.

The revised plan focuses on establishing a temporary camp near Rafah that would accommodate only tens of thousands of displaced Palestinians. It would be administered by Palestinians and secured by a local police force, alongside a limited international security presence. The project is not expected to become operational before the end of this year.

Limited Progress on the Ground

The report said several preliminary steps had been taken in recent weeks. A number of Moroccan and Kosovan officers have arrived in Israel to begin forming the core of an “International Stabilisation Force”.

A logistics base at the Karem Abu Salem crossing is also nearing completion and is expected to store equipment and vehicles for the force.

However, construction of the camp itself has not begun, nor has a proposed base near Rafah that would support the international force. Satellite images reportedly show land-clearing activity but no new structures.

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The report linked any meaningful progress to the Israeli elections scheduled for 27 October, which could remove Prime Minister Benjamin Netanyahu’s right-wing government from power.

Fears of Renewed War

Western diplomats in occupied Jerusalem reportedly believe that further progress on Gaza remains dependent on the formation of a new Israeli government, although there is no guarantee that any successor administration would be more flexible than the current one.

One diplomat said the immediate objective was to “keep the political process alive”, amid fears that its collapse could strengthen Israeli factions advocating harsher plans, including the displacement of Gaza’s population and the re-establishment of settlements in the enclave.

The report also cited growing concern that Netanyahu could launch a major military operation in Gaza before the elections in an effort to strengthen his political position.

Israeli Violations Continue

Israel has continued carrying out air strikes across Gaza since the ceasefire was announced last October, killing more than 1,100 Palestinians, according to the report.

Israeli forces have also continued advancing inside the enclave. The Israeli military now directly controls more than 60 per cent of Gaza’s territory, in addition to the buffer zone.

The Guardian said any return to full-scale war would effectively end the pilot project being pursued by the Board of Peace.

Disarmament Talks Remain Stalled

Talks held in Cairo in recent days addressed possible mechanisms for disarming Hamas and other Palestinian factions, including who would receive the weapons and how they would be stored.

However, Palestinian sources said progress remained unlikely while Israeli military operations continued and no commitment had been made to a gradual withdrawal from Gaza.

One Palestinian source said the continued bombardment and Israeli expansion inside the enclave were “depriving the negotiations of their foundation”.

Limited US Pressure on Israel

Pressure from the Trump administration has reportedly been applied away from public view.

Aryeh Lightstone, a senior US negotiator, sent a message to the Israeli government calling for restrictions to be eased on the entry of dual-use humanitarian materials, including water pipes and solar panels.

He also requested Israeli approval for the deployment of the international force and the planned Palestinian police force.

According to the report, the Israeli government has not agreed to any of these requests.

Major Retreat from Initial Promises

The limited Rafah project represents a significant retreat from the original reconstruction plan announced by Jared Kushner earlier this year.

That plan promised to restore essential services across the entire Gaza Strip within 100 days, including water and electricity networks, hospitals and bakeries.

The revised proposal was agreed during meetings held in Cyprus two weeks ago. Participants included Nikolay Mladenov, the Board of Peace’s envoy to Gaza, representatives of the Tony Blair Institute and members of the National Committee for the Administration of Gaza.

Details of the Pilot Project

The project would establish temporary housing units in the buffer zone near Rafah, with priority given to the city’s original residents.

The area would be secured by the International Stabilisation Force and a trained Palestinian police force.

The international force is expected to consist of about 5,000 personnel, only one-quarter of the number proposed under the original plan.

It is expected to include personnel from Morocco and Kosovo, with possible participation from Albania and Kazakhstan. The legal framework governing its deployment remains under negotiation with Israel.

Funding Crisis

Funding for the project remains unclear.

Only a limited portion of the $17 billion allocated to the US Gaza peace plan has reportedly been disbursed.

The European Union has announced that it has raised €883 million to support water, sanitation and waste-management projects in Gaza. These funds are expected to complement projects overseen by the Board of Peace.

Negotiations are also under way to redirect part of the Palestinian tax revenues withheld by Israel towards financing the project.

The Palestinian Authority has strongly objected, stressing that the funds belong to the Palestinian people and must be released without conditions.

Palestinian and Israeli Criticism

The project has drawn criticism from both Palestinian and Israeli figures.

Former Israeli prime minister Ehud Olmert warned that it could become a “detention camp”, while Board of Peace officials insisted that freedom of movement would be guaranteed both inside and outside the area.

Palestinian Foreign Minister Varsen Aghabekian warned that partial measures could not replace a comprehensive solution to Gaza’s humanitarian crisis.

She said temporary arrangements must not be allowed to become permanent realities or tools for entrenching division within the enclave.

The report also noted divisions within the National Committee for the Administration of Gaza over whether to accept the project.

Some members fear it could discriminate between Gaza’s residents by prioritising relief and services in one limited area while leaving most of the population outside its scope.

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