Trump’s Gaza reconstruction fund stalls despite $17bn pledges

The organisation established by Donald Trump to support reconstruction in Gaza remains in a state of operational limbo, despite securing pledges totalling $17 billion. According to a report by the Financial Times, no funds have been disbursed to projects as of May 2026, leaving the entity’s financial flows effectively stalled.

The Board of Peace was created with the stated aim of facilitating reconstruction efforts in the region. However, reports indicate that the organisation is currently unable to move capital to the ground, regardless of the substantial commitments made to support the initiative. The specific legal or administrative mechanisms preventing the flow of pledged capital are not detailed in current reports.

The status of the $17 billion in pledges remains unclear, with no clarification on whether these represent legally binding commitments or informal expressions of intent. Consequently, the operational structure and current leadership of the Board of Peace are not fully defined in the provided information, contributing to the uncertainty surrounding its ability to execute its mandate.

This development coincides with a broader period of market activity and diplomatic engagement. US President Donald Trump arrived in Beijing on 14 May 2026 for a two-day summit with Chinese President Xi Jinping. The summit, which includes a delegation of major technology executives, has been accompanied by positive movements in US equity markets.

At the start of the summit, the Dow Jones Industrial Average gained 0.8%, the S&P 500 rose 0.3%, and the Nasdaq Composite climbed 0.2%. Additionally, Nvidia shares surged more than 2% following US approval of certain technologies. While these market movements and diplomatic events are occurring concurrently, the source does not explicitly state a causal link between the fund’s operational status and the Trump-Xi summit.

The disconnect between the pledged capital and actual disbursement highlights a significant gap in the implementation of the reconstruction plan. Investors and observers are monitoring the situation as the Board of Peace continues to hold its position without active financial flows to Gaza.