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What is Trump's Peace Council and Why Is It Out of Money?
President Donald Trump's controversial Peace Council, established to oversee the reconstruction and demilitarization of Gaza, is reportedly out of money. According to a Financial Times investigation, the council—which attracted mostly autocratic member states—is stuck in a 'legal and political no-man's land.' Despite promises of billions in contributions, not a single cent has reached the intended reconstruction fund. The Gaza peace plan remains stalled as the council faces a severe funding crisis.
Background: The Creation of the Peace Council
In early 2026, Trump launched the Peace Council during the World Economic Forum in Davos. More than twenty invited countries signed up for membership, paying an estimated $1 billion each in membership fees. The council's stated mission was to rebuild Gaza and ensure its demilitarization. Trump appointed himself chairman for life and promised an additional $10 billion in U.S. support on top of the $7 billion expected from member states. The funds were supposed to be channeled through a World Bank trust fund, ensuring full transparency. However, according to FT sources, no money was ever deposited there.
Where Did the Money Go?
Instead of going to the World Bank, donations were reportedly deposited directly into an account at JPMorgan Chase. The exact amounts, origins, and uses of these funds remain unclear. The lack of transparency has drawn sharp criticism. Known contributions include $20 million from Morocco, which went directly to fund the office of former UN envoy Nickolay Mladenov—appointed by the U.S. as Gaza envoy—rather than to Gaza itself. The United Arab Emirates pledged $100 million for training a new Gaza police force, but those funds are reportedly frozen. The 2025 Gaza ceasefire deal<!--/similar/> has not improved the situation on the ground.</p><h2>Expert Reaction: 'A Total Joke'</h2><p>Joachim Koops, professor of security studies at Leiden University, called the council's funding crisis 'no surprise at all.' He stated: <i>'Nobody believed this would bring anything. Member states just wanted to curry favor with Trump. There was no ambition to follow through.'</i> Koops added: <i>'We can laugh about it, but it is very problematic. It stands in the way of actual, urgently needed solutions.'</i> The council's first progress report, presented to the UN Security Council, blamed Hamas's unwillingness to disarm for all delays—while failing to mention ongoing Israeli attacks that have killed hundreds of Palestinians since the ceasefire began.</p><h2>Impact on Gaza: A Humanitarian Catastrophe</h2><p>The funding crisis comes as Gaza's humanitarian situation deteriorates further. According to UN and EU estimates, nearly all schools have been destroyed, most hospitals are non-functional, and over 371,000 homes have been damaged or destroyed. At least 750 Palestinians have been killed since the ceasefire took effect in October 2025. Israel says it has lost four soldiers. Aid organizations face chronic shortages, partly because Israel keeps border crossings closed. The <!--similar-->Gaza reconstruction cost is estimated at $100 billion over the long term—far exceeding the council's promised funds.
FAQ: Trump's Peace Council
What is Trump's Peace Council?
It is a multilateral body created by President Trump in early 2026 to oversee Gaza's reconstruction and demilitarization. Member states pay $1 billion each to join.
Why is the council out of money?
According to the Financial Times, member states have not deposited the promised funds into the World Bank account. Instead, some money went to a JPMorgan Chase account with no transparency, and most pledges remain unpaid.
Which countries are members?
Over twenty countries signed up, including Morocco, the UAE, and several other nations, mostly with autocratic governments. The exact list has not been fully disclosed.
What has the council achieved so far?
Very little. The council's first progress report blamed Hamas for all delays, but no reconstruction has taken place. The funding shortfall has paralyzed its operations.
Is the Gaza ceasefire still holding?
The ceasefire is nominally in effect since October 2025, but it is frequently violated by Israeli attacks. Hundreds of Palestinians have been killed since the truce began.
Sources
- Financial Times investigation (May 2026)
- NOS reporting based on FT and expert interviews
- United Nations and EU damage assessments in Gaza
- Leiden University professor Joachim Koops
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