The US State Department has forcefully dismissed recent media reports claiming that the United States would bear more than half the cost of a massive, $112 billion reconstruction plan for Gaza proposed by the Donald Trump administration. The department's Bureau of Near Eastern Affairs took to social media platform X to label the claims as "fake news."
What is Project Sunrise?
As first reported by The Wall Street Journal, the ambitious blueprint, codenamed "Project Sunrise," is a $112 billion proposal. It was drafted by a team led by Trump's son-in-law, Jared Kushner, and Middle East envoy Steve Witkoff, with inputs from Israeli officials. The plan, currently a 32-slide PowerPoint presentation, envisions a completely transformed, futuristic Gaza Strip.
The vision includes building beachside luxury resorts, a high-speed rail transport network, and AI-optimized smart grids. A specific slide titled "Transformation | Digitally-Driven Smart City" talks about reimagining Gaza as a tech-driven hub. The plan proposes making a "revitalized Rafah" the new seat of governance, housing over half a million people.
Breaking Down the $112 Billion Vision
The detailed cost breakdown for Project Sunrise spans a decade and totals $112.1 billion. The largest share, $36.1 billion, is allocated for housing reconstruction. This is followed by humanitarian costs at $26.5 billion, infrastructure and utilities at $18.2 billion, and security costs at $9.1 billion. The plan also budgets for public sector operational expenses.
The proposed new Rafah city would feature over 100,000 permanent housing units, more than 200 schools, 75+ medical clinics and hospitals, and over 180 mosques and cultural centres. It also plans for $4 billion in utility and infrastructure investments and $1 billion for developing commercial zones and malls.
Clarifying the US Role and Financing
Contrary to some reports, the US State Department clarified that nowhere does the plan state the US will pay $60 billion. According to the Wall Street Journal's review of the document, just under $60 billion of the total would be financed by grants and new debt. The US has agreed to anchor at least 20% of the total support across all workstreams.
The executive summary states, "Critically, the USA will be a substantial (20%+) anchor of total costs for all the contemplated workstreams." The exact figure beyond the 20% minimum is not specified. The World Bank is also expected to play a financing role in the project.
Conditions and Timeline for Implementation
The implementation of Project Sunrise is not unconditional. The document clearly states that the reconstruction plan is "contingent on comprehensive compliance by Hamas to de-militarize and decommission all weapons and tunnels." If security conditions permit, Trump administration officials suggested work could begin in as little as two months.
This comes against a grim backdrop where official estimates suggest around 10,000 bodies remain buried under 68 million tonnes of rubble in Gaza, a result of the prolonged conflict triggered by the October 7, 2023, attack on Israel.
