Chicago – November 23, 2025
Trump’s 2020 “Peace to Prosperity” plan proposed a heavily conditioned Palestinian state while allowing Israel to annex about 30% of the West Bank, including all settlements and the Jordan Valley. It kept Jerusalem as Israel’s undivided capital and offered Palestinians a capital only in peripheral neighborhoods outside the historic eastern city. The plan included a $50 billion economic package and some land swaps, but Palestinians rejected it because they were not consulted and saw it as one-sided, undermining their territorial, political, and historical claims. Israel welcomed the plan, while much of the international community offered cautious or critical reactions.
Several factors explain why the plan was drafted without Palestinian participation:
1. Palestinians boycotted the Trump administration
After the U.S. recognized Jerusalem as Israel’s capital in 2017 and moved its embassy, the Palestinian Authority (PA) cut off political contacts with Washington.
They viewed the U.S. as no longer a neutral mediator.
2. The Trump team built the plan with Israel, not both sides
The main architects (Jared Kushner, Jason Greenblatt, David Friedman) worked closely with the Israeli government. Because the PA refused to engage and the U.S. didn’t pressure Israel for parallel concessions, the result was a plan shaped almost entirely by Israeli input.
3. Palestinian leadership said the plan ignored core issues
From their perspective, the plan:
- allowed Israeli annexation of parts of the West Bank
- recognized Israel’s control of Jerusalem
- imposed conditions on Palestinian statehood that they saw as unrealistic or one-sided
Given these positions, the PA rejected the process before the plan was even published.
4. Political motivations
For both Trump and Netanyahu, unveiling the plan had significant domestic political value—it was released during a U.S. election year and while Netanyahu faced political pressure in Israel. Each had incentives to proceed without Palestinian participation.
