US State Department denies funding Gaza reconstruction “This is fake news”

The US State Department has denied reports claiming that Washington plans to finance the reconstruction of the Gaza Strip with federal funds amounting to $60 billion.

In a statement posted on X, the department said the United States has no plans to provide grants or loan guarantees from the federal budget to support a large-scale infrastructure rebuilding programme in Gaza.

“This is fake news. Nowhere in the plan does it say the U.S. will pay $60 billion.”

At the same time, the State Department does not deny the existence of a plan to rebuild the Palestinian enclave.

On December 19, the United States unveiled a draft proposal dubbed “Project Sunrise”, outlining an ambitious plan to transform war-ravaged Gaza into a high-tech coastal metropolis, contingent on Hamas fully disarming.

Developed by a team led by Jared Kushner, President Donald Trump’s son-in-law, and Middle East envoy Steve Witkoff, the 32-page presentation envisions rebuilding Gaza over a decade at a cost of $112.1 billion.

The blueprint includes luxury beachfront developments, high-speed rail, AI-driven infrastructure and modern housing, with the aim of lifting Gaza’s population from humanitarian dependency to long-term economic growth.

The plan is explicitly conditional on Hamas dismantling its military capabilities and surrendering control of the enclave. Without that, U.S. officials and external analysts acknowledge the proposal is unlikely to advance. Critics also question the feasibility of securing donor support in a volatile post-war environment.

By Aghakazim Guliyev