US rejects Arab-led Gaza reconstruction plan, sticks to Trump’s proposal

The United States has rejected an alternative reconstruction plan for Gaza backed by Arab leaders, insisting that President Donald Trump stands by his own proposal, which includes relocating Palestinian residents and transforming the enclave into a US-administered coastal zone.

In a statement on Tuesday night, National Security Council spokesman Brian Hughes said the Arab-backed proposal “does not address the reality that Gaza is currently uninhabitable.” He added that Trump remains committed to rebuilding Gaza “free from Hamas” and looks forward to further talks.

The Arab-backed plan, spearheaded by Egypt, envisions Hamas handing control of Gaza to an interim administration until a reformed Palestinian Authority (PA) can take over. Unlike Trump’s proposal, it would allow Gaza’s 2 million Palestinian residents to remain.

At a summit in Cairo, Palestinian Authority President Mahmoud Abbas pledged to hold elections in the West Bank, Gaza, and occupied East Jerusalem for the first time in two decades—if conditions allow.

Israeli Prime Minister Benjamin Netanyahu has refused to outline his postwar vision for Gaza but supports Trump’s plan for a “different Gaza.” He has rejected both Hamas and the PA as future rulers of the enclave.

The $53 billion Arab proposal, with a target completion date of 2030, prioritizes removing unexploded ordnance and clearing over 50 million tons of rubble left by Israeli bombardment.

The plan is expected to be presented to President Trump in the coming weeks, according to Jordanian officials.

While Arab nations have largely endorsed Egypt’s proposal, key players remain absent. Saudi Arabia and the UAE, crucial financial backers for any reconstruction effort, did not attend the Cairo summit. Meanwhile, Algerian President Abdelmadjid Tebboune boycotted the talks, criticizing them as dominated by a “limited group” of Arab states.

A leaked document obtained by CNN outlines ambitious redevelopment plans, including shopping malls, an international convention center, an airport, and coastal resorts to attract tourism.

However, the proposal acknowledges the challenge of disarming militants in Gaza, stating that it can only be addressed through a credible political process.

Senior Hamas official Sami Abu Zuhri firmly rejected any suggestion that the group would disarm in exchange for reconstruction aid.

“The weapon of the resistance is a red line, and it is not negotiable,” he told Reuters.

Hamas has sent mixed signals regarding its governance role in Gaza. While some officials have suggested a willingness to step aside, they insist that any transition must be handled internally without foreign intervention.

The fragile ceasefire in Gaza, in place since January, remains uncertain. Israel supports an alternative US proposal to extend the truce and negotiate the release of hostages taken in Hamas’ October 7 attack.

However, Israel has also blocked essential supplies such as food, fuel, and medicine to pressure Hamas into accepting the terms—drawing international criticism and raising fears of renewed conflict.

Egyptian President Abdel Fattah el-Sissi, speaking at the summit, reaffirmed that “true peace” cannot be achieved without an independent Palestinian state—an outcome strongly opposed by Israel’s government and much of its political leadership.