According to Reuters, five informed sources revealed that Washington is considering asking Israel to transfer part of the withheld Palestinian clearance funds to the “Peace Council,” an entity created under President Donald Trump’s initiative.

The plan envisions channeling revenues to a transitional government in Gaza backed by the U.S., while another portion could go to the Palestinian Authority if it undertakes political and administrative reforms.

Palestinian officials estimate the withheld funds at around $5 billion. Analysts warn that redirecting these revenues could weaken the Authority’s role in reconstruction efforts, despite Western support.

Meanwhile, the ongoing freeze exacerbates the Authority’s severe financial crisis in the West Bank.