The US government is considering a proposal to seize part of the Palestinian Authority’s (PA) frozen tax revenue to fund the operations of the Board of Peace for Gaza, Reuters reported on 15 May.

Three sources with knowledge of the matter said the US has not yet decided whether to formally request that Israel transfer the funds to the Board of Peace. 

Two Palestinian sources indicated that the proposal would allocate some of the withheld revenue to a US-backed transitional authority in Gaza, while the remaining funds would be released to the PA only if it implements Israeli-mandated reforms.

The PA states that Israel is currently holding approximately $5 billion in tax revenue collected on its behalf under longstanding agreements. The freeze has caused a significant financial crisis in the occupied West Bank, leading to major salary cuts for thousands of civil servants.

A Board official declined to confirm whether the tax proposal was under discussion, but said all parties had been asked to contribute resources toward Trump’s estimated $70 billion plan to rebuild Gaza.

“That includes the Palestinian Authority and Israel. There is no doubt that money held in a bank does nothing to further the President’s 20-Point Plan,” the official said.

The dispute centers on payments made by the PA to Palestinian prisoners and families of those killed by Israeli forces, a welfare support system that the US and Israel have long sought to abolish, claiming it incentivizes violence against Israelis.

Nickolay Mladenov, the Board of Peace envoy for Gaza, said reconstruction planning was already “in advanced stages,” adding, “We’re doing it sector by sector. We’re costing things. We’re coordinating with donors and we’re ready to begin in earnest once the conditions allow it.”

The scramble for funding comes as Trump’s Board of Peace received less than $1 billion of the $17 billion pledged by allied nations, leaving the US plan badly underfunded.

Only the UAE, Morocco, and the US had reportedly contributed money, despite pledges from over 10 countries, one source said, adding that the US war against Iran “has affected everything,” deepening the board’s funding crisis.

A Palestinian official said Mladenov told Hamas and other Palestinian factions that the National Committee for the Administration of Gaza could not enter the strip due to the shortfall, adding that “No money is currently available.”

https://thecradle.co/articles/white-house-weighs-diverting-frozen-palestinian-funds-to-bankroll-floundering-board-of-peace-report

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