The U.S. State Department has allocated $1.25 billion in foreign aid to a newly formed international organization intended to contribute to the rebuilding of Gaza, according to reports. This comes as President Trump has stated the U.S. Will provide a total of $10 billion to the Council of Peace, a figure that differs from the initial commitment.
Sources indicate that officials diverted funds from existing international aid programs to reach the $1.25 billion figure. Specifically, $1 billion was taken from international disaster relief, $200 million from peace operations, and $50 million from international organizations and programs.
The State Department declined to comment on the transfer of funds, stating, “At this time, we have nothing to announce.” The White House did not respond to requests for comment.
Responding to the allocation, Democratic Senator Catherine Cortez Masto plans to introduce legislation on Thursday, March 26, 2026, to redirect $1 billion of the funds to a low-income household energy assistance program. This move comes amid concerns that escalating tensions, including the conflict with Iran, are driving up energy prices.
“Instead of giving President Trump a blank check for $1 billion to fund a non-transparent ‘Council of Peace,’ let’s focus on helping American families pay their monthly electric bills,” Senator Cortez Masto said, according to reports. But, given the Democrats’ minority in the Senate, the bill’s passage remains uncertain.
