President Donald Trump’s ambitious postwar Gaza initiative is facing mounting questions after donor money promised to the newly created Board of Peace has yet to arrive through its official funding channel, leaving reconstruction plans stalled and the organization’s legal status under scrutiny.

The initiative, unveiled by Trump in January, was designed to reshape Gaza after the war through a massive international funding campaign. The plan called on world leaders to contribute $1 billion for “lifetime membership” in the Board of Peace, while participating countries reportedly pledged another $7 billion for Gaza-related humanitarian and rebuilding projects. Trump also vowed an additional $10 billion in American support.

But according to a report published Wednesday by the Financial Times, the World Bank-managed account established to oversee the board’s finances still has not received donor money, despite the passage of four months since the organization’s launch.

Instead, the report said, contributions have been routed to a separate JPMorgan account overseen directly by the board itself. A spokesperson for the organization told the newspaper that donors were offered several different contribution methods, including the World Bank mechanism, and chose to use alternative channels.

The spokesperson also said the board would disclose financial information to its executive board “at a time deemed appropriate.”

The report said Morocco has already transferred roughly $20 million, which has reportedly been used to finance the office of Nickolay Mladenov, the board’s appointed “high representative” for postwar Gaza affairs, along with salaries for the Palestinian technocratic committee selected to oversee governance in the territory.

According to the Financial Times, the United Arab Emirates separately allocated $100 million intended for the creation and training of a new Gaza police force. However, that program has not moved forward, and the funds remain inaccessible.

At the same time, the US State Department is reportedly attempting to redirect approximately $1.2 billion in existing aid funds toward projects tied to the board’s mission, though none of that money has yet been spent. Another proposal that would send roughly $50 million directly to the organization for administrative expenses is still awaiting approval.

Members of Congress quoted in the report said lawmakers remain uncertain about the board’s legal classification and the mechanisms governing its finances. Officials are reportedly questioning whether the organization legally qualifies as an international institution permitted to receive direct American funding.

Democratic Senator Brian Schatz said Secretary of State Marco Rubio explained the organization to him as functioning under a structure similar to a UN-affiliated body dedicated to humanitarian aid and reconstruction work in Gaza. Schatz said, however, that Trump himself has characterized the organization differently at various times, adding to the confusion surrounding its official status.

The Board of Peace has reportedly started issuing tenders connected to Gaza security and rebuilding operations, but no agreements have been finalized so far. A spokesperson for the organization said activity inside Gaza could not begin until Hamas agreed to disarm.

The report added that the broader objectives outlined in Trump’s Gaza blueprint — including Hamas disarmament, an Israeli military withdrawal, and large-scale reconstruction — have shown little or no progress.

Bishara Bahbah, a Palestinian-American businessman involved in communications with Hamas on behalf of the Trump administration, said the Palestinian administrative committee created by the board has remained inactive inside Gaza because funding has not materialized.

“They know that if they go to Gaza, people are going to flood to them to ask for assistance, and they have no tools, no means,” Bahbah said, according to the report.

{Matzav.com}