Trump ‘redirects $17bn Gaza fund to Israel’ report sparks controversy
Allegations emerge that money pledged for reconstruction was redirected during regional conflict, raising questions over oversight and accountability
By Abdullahi Yusuf
A report in a Lebanese newspaper has alleged that billions of dollars intended for reconstruction in Gaza were redirected to Israel under the administration of US President Donald Trump.
According to the report, published by Al Akhbar, approximately $17 billion earmarked for the Gaza Strip was transferred away from its intended purpose during a period of heightened regional tensions.
The funds had reportedly been designated to support humanitarian relief and rebuilding efforts, including assistance for hundreds of thousands of families and the provision of temporary housing.
The claims have not been independently verified, and there has been no immediate response from US or Israeli officials.
Central to the report is Nickolay Mladenov, described as a senior figure within a US-backed body referred to as the “Peace Council”. He is said to have informed administrators overseeing Gaza-related programmes that the fund had been depleted.
The report alleges that the money had originally been pledged during discussions earlier in the year, including commitments made at an international gathering in Davos. These included financial support for approximately 350,000 families, as well as the provision of tens of thousands of prefabricated housing units.
However, according to the same account, those commitments have not materialised.
The report also details internal disagreements over the management of the initiative. It says Ali Shaath, who headed the administrative committee overseeing the programme, held discussions with former UK Prime Minister Tony Blair prior to meeting Mr Mladenov.
Mr Blair is said to have advised that the committee focus strictly on humanitarian work and avoid political involvement. The report claims that subsequent instructions from Mr Mladenov went further, directing that no public positions be taken on developments in Gaza and that operational activities be suspended.
The resulting uncertainty has, according to the report, contributed to a breakdown in the committee’s functioning, with some Palestinian factions calling for Mr Shaath to return to Gaza to resume direct oversight.
The allegations, if substantiated, could raise broader questions about the management of international aid flows and the extent of external influence over governance structures linked to Gaza.
At present, the claims remain contested and unverified, but they add to the growing scrutiny surrounding aid distribution and political oversight in one of the region’s most sensitive humanitarian contexts.
With additional information from Press tv
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