Gaza Enters Phase 2 of Trump's Ceasefire Plan: New Administration, $50B Reconstruction Ahead

The Gaza Strip is entering a new and uncertain chapter as the Trump administration formally launches Phase 2 of its ambitious 20-point peace plan. According to Al Jazeera, US Special Envoy Steve Witkoff announced the transition on January 14: "We are announcing the launch of Phase Two of the President's 20-Point Plan to End the Gaza Conflict, moving from ceasefire to demilitarization, technocratic governance, and reconstruction."

New Palestinian Governance Structure

Central to Phase 2 is the formation of the National Committee for the Administration of Gaza (NCAG), tasked with managing the devastated territory's day-to-day operations. ABC News reports the committee is headed by Ali Shaath, a Gaza native who served as deputy minister for transportation with the Palestinian Authority. Shaath is an engineer specializing in economic development and reconstruction — skills desperately needed in the territory.

Trump's Board of Peace

On January 17, the White House announced the formation of a broader "Board of Peace," including a Gaza-focused executive board to support postwar arrangements. According to Axios, President Trump will chair the first meeting during the World Economic Forum in Davos. The announcement drew immediate pushback from Israel, which stated the proposal had not been coordinated with Netanyahu's government and objected to Turkish and Qatari representatives on the board.

Phase 1: Promises vs. Reality

Al Jazeera's analysis reveals a stark gap between Phase 1 promises and outcomes. From October 10, 2025 to January 9, 2026, only 23,019 aid trucks entered Gaza out of 54,000 required — just 43% of the target. More troubling, Israeli violations of the ceasefire have killed at least 442 Palestinians and injured 1,240 others.

The Hamas Question

Critical details about Hamas's disarmament remain unresolved. The militant group has not agreed to lay down its arms, and fighting has continued sporadically. The Times of Israel notes that the Trump administration told Netanyahu it is committed to recovering the final deceased hostage and disarming Hamas — but is not conditioning Phase 2 on either outcome.

The Staggering Cost of Reconstruction

The United Nations estimates that rebuilding Gaza will cost more than $50 billion, a process expected to take years. With much of the territory's infrastructure destroyed and its population displaced, the transition from ceasefire to lasting peace faces immense challenges that Phase 2's technocratic approach has yet to address.