Reconstruction Needs in Gaza

As nearly 75% of Gaza’s structures have been damaged or destroyed due to two years of Israeli airstrikes, the upcoming rebuilding effort is projected to cost around $70 billion, according to the United Nations. This creates a significant opportunity for companies specializing in construction, demolition, and logistics. However, long-term contracts cannot yet be issued, as the Board of Peace—which will oversee these efforts, chaired by Donald Trump—has not yet been established. Moreover, the scope of the new Civil-Military Coordination Center is quite restricted.

The White House Taskforce and Strategic Planning

In parallel with these official initiatives, the White House has formed a dedicated taskforce for Gaza, led by Jared Kushner, Steve Witkoff, and Aryeh Lightstone. Notably, two former officials associated with a push by Elon Musk to reduce federal employment are spearheading discussions on humanitarian assistance and post-war reconstruction plans.

They are reported to have disseminated detailed logistics proposals, including pricing estimates and potential warehouse locations.

American contractors are preparing to compete for what may be highly lucrative contracts. One notable contender is Gothams LLC, a firm with close political connections that previously secured a $33 million contract related to a controversial detention facility in Florida.

Challenges Facing Contractors

Despite initial interest, Gothams’ founder, Matt Michelsen, announced that he would withdraw from Gaza-related contracts due to security concerns following inquiries from News. “I’ve reconsidered my company’s involvement,” he stated.

Eddie Vasquez, a spokesperson for the White House taskforce, did not provide specific answers about the processes governing Gaza’s reconstruction, emphasizing that planning is still in its early stages. He referred to current discussions as merely exploratory, with no final contracts yet in place.

According to industry sources, contractors are actively traveling to the region to meet with influential U.S. officials and prospective local partners ahead of the holidays. “Everyone is eager to get a slice of the pie,” noted one contractor familiar with the dynamics. “They’re treating this like another Iraq or Afghanistan, aiming to profit immensely.”

Proposed Plans and Political Dynamics

The UN recently backed Trump’s vision for Gaza, which envisions high-end resort developments. Meanwhile, most global stakeholders are advocating for the reconstruction to focus on creating a sustainable living environment for Gaza’s 2.1 million residents.

Israeli authorities maintain control over half of the territory and have stated they will not allow reconstruction in areas governed by Hamas until the group is disarmed.

Amid these complex negotiations, two former Doge officials have been sent to Gaza to organize postwar planning. Josh Gruenbaum is now a senior advisor for the Gaza taskforce, while Adam Hoffman, a recent Princeton graduate, is reportedly pushing forward new logistical frameworks.

Hoffman’s influence appears to have grown significantly, with sources indicating he has been soliciting input on a new logistics design for Gaza, labeled “Gaza Supply System Logistics Architecture.” This document proposes a “Master Contractor” to facilitate up to 600 humanitarian and commercial truckloads into Gaza daily, presenting a potential revenue stream of $1.7 billion per year.

Future Prospects and Concerns

Previous to the current crisis, roughly 500 trucks were allowed daily into Gaza, delivering essential goods to a population living under an extensive blockade. Since October 7, access has been severely restricted, often reducing daily entry to an average of only 140 trucks.

The role of the UN and other longstanding humanitarian organizations moving forward remains uncertain, as Israeli authorities control all access permits for groups intending to operate in Gaza.

Amed Khan, an American philanthropist delivering aid to Gaza, criticized the reconstruction plans as fundamentally flawed, pointing out that the orchestrators lack any real experience in humanitarian work. “None of these individuals are humanitarians,” Khan remarked. “There’s no surge of medical supplies or equipment.”