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U.S. Weighs $5B PA Tax Shift to Gaza, Risks Crisis

5/16/2026

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Story summary
  • Officials are weighing a request that Israel redirect up to $5 billion of PA tax revenues to Board of Peace for Gaza reconstruction.
  • Board of Peace said money does nothing for President Donald Trump’s 20-Point Plan.
  • Diverting the funds would deepen the PA’s financial crisis because the revenues are already withheld.
  • The proposal would fund a U.S.-backed Gaza transitional government and conditional PA aid, while Trump’s $70 billion rebuilding plan remains stalled.