US Rejects Arab League’s $53BN Alternative Gaza Reconstruction Plan

The United States and Israel have quickly rejected a new Gaza peace and reconstruction plan proposed by the Arab League under Egypt’s leadership, which was unveiled Tuesday.

A counterproposal to Trump’s provocative Gaza ‘takeover’ plan which advocates the removal of the Palestinian population to neighboring Arab states, the Egyptian plan would of course allow its roughly two million inhabitants to remain.

The $53 billion plan approved by the Arab League aims to rebuild the destroyed Gaza Strip by 2030, while setting up hundreds of thousands of temporary housing units so that Palestinians won’t have to leave. Arab leaders have blasted Trump’s prior proposals as but greenlighting an Israeli ethnic cleansing campaign, and Jordan and Egypt in particular have vehemently rejected the possibility of resettling Palestinians in their territories.

It calls on UN Security Council to deploy an international peacekeeping force in Gaza and the occupied West Bank, which would establish security while reconstruction takes place – and foresees the recycling of rubble to expand Gaza’s coastline and even “sustainable, green and walkable” housing and urban areas, also utilizing renewable energy.

Further, according to the Associated Press, “The communique said Egypt will host an international conference in cooperation with the United Nations for Gaza’s reconstruction, and a World Bank-overseen trust fund will be established to receive pledges to implement the early recovery and reconstruction plan.”

Hamas has welcomed the plan, despite that it says the West Bank-based Palestinian Authority (PA) would eventually take over governance and management of the Gaza Strip.

“We welcome the Gaza reconstruction plan adopted in the summit’s final statement and call for ensuring all necessary resources for its success,” the group said. The Islamist militant group further expressed support for “the formation of the Community Support Committee to oversee relief efforts, reconstruction and governance in Gaza.”

An Israeli government statement said the Arab League’s plan ultimately “fails to address the realities of the situation following October 7th, 2023, remaining rooted in outdated perspectives.” It also blasted the Arab body for failing to condemn the Hamas Oct.7 terror attack in its statement announcing the plan.

Instead, the Israeli Foreign Ministry said, “Now, with President Trump’s idea, there is an opportunity for the Gazans to have free choice based on their free will. This should be encouraged! Instead, Arab states have rejected this opportunity, without giving it a fair chance, and continue to level baseless accusations against Israel.”

If this article is to be believed, Israel is gearing up to re-invade and occupy Gaza even more ruthlessly than they did before, empowered by the backing of Trump, whose Gaza takeover plan they are taking very “seriously” — not just as some vague “negotiating” feint pic.twitter.com/Y1FFRDv6tm

— Michael Tracey (@mtracey) February 28, 2025

The White House also responded negatively, with White House National Security Council spokesman Brian Hughes asserting that the Arab plan did “not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance.”

“President Trump stands by his vision to rebuild Gaza free from Hamas. We look forward to further talks to bring peace and prosperity to the region,” he added.