Israel Halts Board of Peace’s First Gaza Base, Stalling $71bn Reconstruction Plan

Key points

• Israel has refused to allow contractors and trucks to enter Gaza to build a 100x100 meter fortified outpost for the Board of Peace’s International Stabilization Force (ISF).
• The contract, awarded in early August to Louisiana-based Arkel International, remains unfulfilled two months later, blocking the entire reconstruction program.
• The outpost is intended for 150 rotating troops, drawn from a larger force of 500 already deployed from Morocco and Kosovo, to secure sites for rebuilding.
• The Board of Peace, chaired by Donald Trump, unveiled a $2.45bn six-month plan in September, part of a $71bn ten-year reconstruction effort, but cannot proceed without security.
• The site was previously used by the defunct Gaza Humanitarian Foundation, which operated in Gaza from May to October 2025.
• Israel has continued strikes in Gaza since the October 2025 ceasefire, killing approximately 1,400 people, according to Gaza health authorities.

Background

The Board of Peace was established following the October 2025 ceasefire in Gaza, authorized by the UN in 2025. It has faced criticism for excluding UNRWA and for its controversial structure, with Trump serving as chair for life and Jared Kushner as an executive member. Previous coverage noted that one year after the ceasefire, the Board had failed to halt violence or rebuild, with aid restricted and Israeli forces occupying 60% of the territory. The US had previously rebuffed Israeli plans to depopulate Gaza, supporting Trump’s 20-point peace plan that emphasizes voluntary departures and demilitarization.

How outlets are covering it

The Guardian and Israel National News report that Israel’s refusal to open the border has effectively stalled the Board of Peace’s entire program, with a source stating, 'You can’t get in without an ISF. You can’t rebuild.' The Jerusalem Post confirms the delay but notes that Israel has recently approved an American company to map locations for Hamas weapon surrender, a step that precedes reconstruction in Trump’s plan. While the Board of Peace and Israeli officials declined to comment, the sources agree that the outpost is a prerequisite for all other activities. The Guardian emphasizes the political dimension, noting Trump’s claims to have ended the war, while Israel National News highlights the sequence of demilitarization before withdrawal. All sources agree that the 1,400 deaths since the ceasefire underscore the lack of security.

Why it matters

The blockade of the outpost halts the first phase of a $71bn reconstruction plan, potentially delaying Gaza’s recovery for years. It highlights the tension between the US-led Board of Peace and Israel, which controls border access. Without the ISF, no construction equipment or utilities can enter, leaving Gaza in a state of prolonged crisis. The delay also undermines Trump’s claims of having resolved the conflict, as violence continues and reconstruction remains stalled. The outcome of the October 27 Israeli elections may determine whether the project proceeds, but the current impasse risks further instability in the region.

What to watch

The Board of Peace expects Israel to allow construction after the October 27 elections. If approved, Arkel International will begin building the outpost, enabling the 150-troop ISF to deploy and secure sites for reconstruction. If not, the $2.45bn six-month plan will remain stalled, and the $71bn ten-year effort will be delayed. The US may pressure Israel to comply, but Israel’s continued strikes and refusal to open the border suggest a prolonged impasse. The mapping of Hamas weapon surrender sites may proceed, but without the ISF, reconstruction cannot begin.