EXPLAINER What's in Phase Two of the Gaza plan? And will it work?

The United States has announced that its Gaza peace plan has reached its second phase. But what does the plan outline next for Gaza?

In short: The second phase should establish a new technocratic Palestinian administration for Gaza, to be overseen by a 'Board of Peace'. But there are still plenty of difficulties ahead – and phase one has hardly gone as smoothly as might be hoped. 

Read on for more about phase one, phase two, the mooted new government, the Board of Peace – and the problems that may be faced. 

How did the first phase of the Gaza peace plan go?

The Gaza peace plan first came into force on October 10, facilitating the return of all the hostages held by Hamas and an end to the fighting between the Palestinian militant group and Israel in the besieged territory.

The first phase has been shaken by issues including Israeli airstrikes that have killed hundreds in Gaza, the failure to retrieve the remains of one last Israeli hostage, and Israeli delays in reopening Gaza's border crossing with Egypt.

Israel and Hamas have accused each other of ceasefire violations in Gaza where since the start of the truce in October over 450 Palestinians, including more than 100 children, and three Israeli soldiers have been reported killed.

By pressing on with phase two, the United States and its mediator partners will need to tackle the even more vexing challenges of disarming Hamas, which has refused to give up its arms, and deploying an international peacekeeping force.

What happens in phase two of the Gaza peace plan? 

Ali Shaath, who is set to lead the Palestinian technocratic administration, said in a radio interview that the committee would focus first on providing urgent relief for Gaza, including the provision of housing for displaced Palestinians, many of whom are living in makeshift tent shelters amid the rubble.

"If I bring bulldozers and push the rubble into the sea, and make new islands, new land, I can win new land for Gaza and at the same time clear the rubble. This won't take more than three years," Shaath told a West Bank radio station.

Rebuilding Gaza's shattered homes will take at least until 2040, but could drag on for many decades, according to a 2024 UN report.

For Palestinians, the central issue remains Israel's full military withdrawal from the Gaza Strip – a step included in the plan's framework but for which no detailed timetable has been announced.

Hamas, meanwhile, has refused to publicly commit to a full disarmament, a non-negotiable demand from Israel.

US President Donald Trump's special envoy Steve Witkoff said that phase two of the plan also will begin "the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel," and that Washington expects Hamas to "comply fully with its obligations." 

Hamas agreed in October to hand over governance to the technocratic committee. It remains unclear how Hamas, which has regrouped since a fragile ceasefire began in October, will be disarmed as required by the plan.

Hamas is preparing to hold internal elections to rebuild its leadership, which has been decimated by Israeli killings during the war in Gaza. That vote is expected "in the first months of 2026," a Hamas leader said this week.

Are the sides confident phase two will work? 

Washington would work to bridge the differences between the two sides, as US official briefing reporters said, adding that the Israelis "remain skeptical that Hamas will disarm and that the Palestinian people want peace."

"The goal here is to create the alternative to Hamas that wants that peace, figure out how to empower them," the official said, referring to the new committee of Palestinian technocrats as a new "government" for Gaza.

"And obviously, now that we have this government, we will be engaging in conversations: with Hamas on the next phase, which is demilitarization; with Israel, on what amnesty program can be given to Hamas if they do this."

In the West Bank, the Palestinian Authority welcomed the move ahead with the phased plan and voiced support for the transitional committee.

Palestinian Vice President Hussein Al-Sheikh posted on social media that institutions in Gaza should be linked to those run by the Palestinian Authority in the West Bank, "upholding the principle of one system, one law and one legitimate weapon."

Hamas leaders and other Palestinian factions are in Cairo for talks on the second phase, the group said, where members of the technocratic Palestinian committee were expected to meet with former UN Middle East envoy Nickolay Mladenov, a Bulgarian who is set to represent the Board of Peace on the ground. 

Egyptian sources said talks with Hamas will now focus on the group's disarmament. Further Israeli withdrawals within Gaza are tied to disarmament, though Hamas has said it will give up its weapons only once there is a Palestinian state.

"The ball is now in the court of the mediators, the American guarantor and the international community to empower the committee," Bassem Naim, a senior Hamas leader, said in a statement on Thursday.

What is the Palestinian technocratic government? 

On Wednesday, Witkoff said the second phase "establishes a transitional technocratic Palestinian administration in Gaza" and would begin the process of disarmament and reconstruction.

The administration will have 15 members and will be led by Ali Shaath, who had been in charge of developing industrial zones while serving the Palestinian Authority, according to a joint statement by mediators Egypt, Qatar and Türkiye.

A seasoned civil servant largely unknown to the wider public, former Palestinian Authority deputy minister Shaath was born in the southern city of Khan Yunis in 1958, later leaving to study in Cairo.

On Thursday, Trump confirmed his support with a social media post saying "I am backing a newly appointed Palestinian Technocratic Government, the National Committee for the Administration of Gaza, supported by the Board's High Representative, to govern Gaza during its transition.

"These Palestinian leaders are unwaveringly committed to a PEACEFUL future," Trump continued. He also said Egypt, Qatar and Türkiye will help to secure what he called a "comprehensive demilitarization agreement" with Hamas.

Israel and Hamas signed off in October on the plan, which says the Palestinian technocratic body will be overseen by an international so-called 'Board of Peace' intended to supervise Gaza's governance for a transitional period.

Hamas and its rival Fatah group, led by Palestinian President Mahmoud Abbas, have both endorsed the list of technocratic committee members, Egyptian and Palestinian sources said.

It will also include the head of the Gaza Chamber of Commerce, Ayed Abu Ramadan, and Omar Shamali, who has worked for the Palestine Telecommunications Company, Paltel, Palestinian sources said.

The sources said the list would also include Sami Nasman, a retired senior Palestinian Authority security officer and a longtime critic of Hamas. Nasman, a member of Abbas's Fatah movement, is originally from Gaza but has since 2007 been living in the West Bank.

Israeli officials did not immediately respond to a request for comment.

What is the 'Board of Peace'?

In another post, Trump said the 'Board of Peace,' of which Trump himself is the chair, was formed and its members would be announced shortly. A US official who briefed reporters on condition of anonymity said invitations were sent out on Wednesday to potential Board of Peace members personally selected by Trump. 

Another announcement related to the Board of Peace was also expected to be made at Davos next week, a European diplomat said.

Former UN Middle East envoy Nickolay Mladenov is expected to represent the Board of Peace on the ground. Other members are said to include people from the private sector and NGOs, although Witkoff did not say how many members the body would include or name them.

Many experts say Trump being chair of the board meant to supervise Gaza's governance resembled a colonial structure.

The plan also calls for the deployment of an International Stabilisation Force to help secure Gaza and train vetted Palestinian police units.