The United States is considering asking Israel to allocate part of the Palestinian Authority’s (PA) frozen tax revenues to President Donald Trump’s “Board of Peace” for implementing his post-war Gaza reconstruction plan, according to five sources familiar with the matter. Three sources said Washington has not yet decided whether to make a formal request to Israel. Two Palestinian sources indicated that under the proposal, part of the funds would go to a US-backed interim government for Gaza, while the rest would be released to the PA if it carries out required reforms.

The PA says Israel is currently withholding about $5 billion in tax revenues, collected under a long-standing arrangement for imported goods. Israel froze the funds over disputes regarding payments to families of prisoners and those killed by Israeli forces. The freeze has caused a severe financial crisis in the West Bank, forcing salary cuts for thousands of PA employees.

Trump’s $70 billion Gaza reconstruction plan remains stalled as Hamas refuses to disarm and Israeli attacks continue. The PA was not consulted in the plan, and its exclusion from the “Board of Peace” has further marginalized the Western-backed authority.