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Four months after its launch, U.S. President Donald Trump's Board of Peace, described by the president as one of the "most consequential" international organizations ever created, has an empty official fund, unresolved legal status, no contracts awarded, and no presence on the ground in Gaza, the Financial Times (FT) reported, citing four people familiar with the matter.
"Zero dollars have been deposited," one source told the FT.
Rather than using the World Bank-administered fund, the board has directed donations into a JPMorgan bank account, with no independent transparency requirements in place for that account.
A Board of Peace official told the FT that "a number of options were established to receive funding" and that "at this point, contributors have opted to use other options."
The board "will report its financials" to its own executive board "at a time deemed appropriate," the official added.
Approximately $3 million from Morocco and $20 million from the UAE have been received directly, funding the office of Nickolay Mladenov, the board's "high representative" for post-war Gaza, and salaries for the Palestinian technocratic committee the board formed to govern the strip.
The UAE also provided $100 million to train a new Gaza police force, but the program has yet to start, and the funds are frozen, two people told the FT.
The U.S. State Department intends to reallocate approximately $1.2 billion in aid spending for board-related projects, but that money has not been spent and would not go directly to the board.
It also wants to provide about $50 million directly to the board for operations, but that too has not been distributed.
Congressional officials said the board would not be allowed to use U.S. funds until financial controls and necessary systems were in place.
The board's spokesperson told the FT that no contracts had been awarded.
"A lot of it is because we're not operating in Gaza yet," because Hamas had yet to disarm, the spokesperson said, adding, "We're not, like, hoarding money in a bank account and then awarding contracts for things that can't be delivered."
Bishara Bahbah, the Palestinian-American businessman who helped negotiate with Hamas on behalf of the Trump administration and speaks regularly with committee members, described the situation as "really dismal."
"They know that if they go to Gaza, people are going to flood to them to ask for assistance, and they have no tools, no means," he told the FT.
The board faces unresolved legal questions about its status in the United States. Some lawmakers have questioned whether it meets the legal threshold to qualify as an international organization eligible to receive U.S. funds, and have yet to receive detailed answers from the State Department.
U.S. Secretary of State Marco Rubio told Democratic Senator Brian Schatz the board had "similar legal jurisdiction to a U.N. agency" and was "a creature of the U.N."
Trump, however, has described the board as "sort of a king's court," Schatz said, adding, "so I just don't know which one it is. It is not obvious to me at all."
A U.N. Security Council resolution described the board as a "transitional administration"—raising questions about what happens when that mandate expires. A would-be contractor told the FT: "Who is responsible for Gaza? What law is applicable in Gaza? There's a lot of risk for the companies that try to do this."
Trump launched the Board of Peace in January with the stated mission of overseeing Gaza's redevelopment after two years of war following Hamas's October 7, 2023 attack on Israel.
He described the $1 billion "lifetime membership" fees as a requirement for permanent board membership, solicited donations from a wide range of countries, including Russia, and enlisted Kushner, who holds no official role, to develop reconstruction concepts, including a futuristic AI-powered Gaza.
France and Britain declined to join.
Qatar, Saudi Arabia, and the UAE each pledged at least $1 billion.
No progress has been made on any of the three key conditions for reconstruction: Hamas disarmament, Israeli withdrawal, or rebuilding.
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