U.S. and Israel Reject $53 Billion Arab Plan for Gaza Reconstruction

The proposal, backed by Arab nations, aims to rebuild Gaza without displacing Palestinians, contrasting sharply with Trump's controversial 'Gaza Riviera' vision.

Arab League nations proposed a $53 billion, six-year reconstruction plan for Gaza, focusing on rebuilding infrastructure and housing while allowing Palestinians to remain in the territory.
The U.S. and Israel dismissed the plan, with the Trump administration favoring a proposal to transform Gaza into a U.S.-owned resort area, which would require the displacement of its population.
Israel criticized the Arab plan's goal of reinstating the Palestinian Authority in Gaza, accusing it of corruption and ties to terrorism, while Hamas expressed support for the Arab proposal.
The Arab plan includes a temporary six-month governance structure led by Palestinian technocrats, followed by a phased reconstruction funded by international investments and organizations.
The rejection of the Arab plan comes as tensions grow over the fragile ceasefire between Israel and Hamas, with disputes over hostages, demilitarization, and the next steps in the peace process.