Chicago – May 15, 2026
The United States is considering asking Israel to redirect some tax revenue it withholds from the Palestinian Authority to Donald Trump’s Board of Peace, according to Reuters. The proposal could help finance Trump’s postwar Gaza plan, which the board says may cost about $70 billion.
Sources told Reuters that the plan is still under discussion and no formal U.S. request has been made to Israel yet. Under the idea, part of the money could go to a U.S.-backed transitional authority in Gaza, while another share could reach the Palestinian Authority if it carries out reforms.
The Palestinian Authority says Israel is withholding about $5 billion in tax revenue, money it normally uses to pay civil servants and fund public services. Critics say diverting those funds could deepen the authority’s financial crisis and further sideline Palestinian leadership in Gaza’s future.
The tax dispute has long centered on Israeli objections to Palestinian payments to prisoners and their families. Reuters also reported that the PA was not invited to Trump’s Board of Peace, underscoring tensions over who will shape Gaza’s reconstruction.
