Israel Has Not Let Contractors Into Gaza to Build Board of Peace Troop Base, Source Tells Guardian

The first construction contract issued by President Donald Trump's Board of Peace for Gaza is stalled at the border, according to a person with direct knowledge of the matter who spoke to the Guardian.

In early August, the Board of Peace awarded Louisiana-based Arkel International a contract to build a fortified outpost for 150 international troops. Two months later, the source said, contractors and trucks have not been allowed to enter Gaza. "Israel won't open the border," the person said.

A Board of Peace spokesperson declined to comment. The Israel Defense Forces and the Israeli government did not respond to the Guardian's requests for comment. No Israeli official has publicly addressed the claim, so the reason for the delay is unknown.

What the outpost is for

The site is modest. The source described a fortified position of roughly 100 meters by 100 meters, on ground that was once part of the Gaza Humanitarian Foundation's operation. That U.S.-backed aid effort, protected by private contractors, ran from May to October 2025 and is now defunct.

The base would host short rotating deployments of a well-armed 150-person force. It would be the vanguard of an international stabilization force.

The source said the rest of the program depends on it. "You can't get in without [an international stabilization force]. You can't rebuild," the person said. Without security, there are no deliveries of construction equipment and no utilities, the person added.

The source said the Board of Peace believes Israel's government will let the project proceed after Israeli elections scheduled for Oct. 27. That is a belief held by one side of the dispute. Israel has not confirmed it.

A $2.45 billion plan with no start date

The stall lands against a backdrop of large ambitions. On Sept. 23, at an event during the UN General Assembly in New York, Board of Peace officials unveiled a $2.45 billion plan of 66 programs to begin rebuilding Gaza. The plan puts physical damage at $35.2 billion and full recovery at about $71.4 billion over a decade. It calls for repairing border crossings, restoring electricity and water, deploying 25,000 portable solar kits and permanently filling tunnels beneath priority reconstruction sites.

Officials acknowledged then that implementation was uncertain. Israel and Hamas remain at odds over terms of the ceasefire. Negotiators have not agreed on conditions for Hamas to disarm or for Israel to withdraw its troops, according to Reuters. Reuters also reported that more than 2 million residents are confined to about a third of the territory, mostly in tents or damaged buildings, and that an Israeli strike that day killed four people, including a Hamas official.

Secretary of State Marco Rubio called it "a longterm project" that cannot happen in six months. Jared Kushner, who devised the plan, conceded "different delays on different things, for whatever reason." He added: "We're just refining, sharpening the axe, getting ready for when we get to the time to cut the tree."

Kushner has also backed Israel's right to "finish the job" in Gaza if Hamas does not disarm, per Reuters.

The administration's case

Board of Peace officials describe the past year as a success. Senior advisor Josh Gruenbaum told Fox News Digital that Trump's team built working relationships with regional actors, "overlaid with peace through strength," and pushed Hamas to understand it faced either a hard ending or an "off-ramp." He said the plan has built consensus including in Europe, and has strong ties with the United Nations. The UN endorsed the board through Resolution 2803 in November 2025.

European Commissioner Dubravka Šuica said in September that the EU had gathered about $1 billion for early recovery in Gaza and would sign projects with UNDP and UNICEF, in alignment with the board's priorities. Retired Gen. Jack Keane called the plan a "huge step forward" on Fox & Friends, saying the deal mandates complete disarmament of Hamas, Israeli withdrawal and a transition to a new Palestinian government.

The ceasefire has held in the sense that major fighting ended around October 2025. Trump counts Gaza among eight wars he says he has resolved. But the board's own officials say reconstruction has not begun, and the one concrete construction contract it has issued is, per the Guardian's source, not moving.

What comes next

The board is structured with Trump as chair for life. Kushner and Steve Witkoff sit as executive board members. Netanyahu signed up as a member before meeting Trump at the White House, according to the Israeli prime minister's office.

The open question is whether Israel's Oct. 27 election changes anything. The source says the board expects it will. Israel has said nothing on the record about the Arkel contract, and until it does, the 150-troop outpost sits unbuilt.