The United States has announced the start of phase two of its Gaza peace plan, setting out a transition from a fragile ceasefire towards demilitarisation, a technocratic Palestinian administration in Gaza and the start of large-scale reconstruction of the devastated territory.
Background
Phase two follows a ceasefire deal reached in late 2025 after months of war between Israel and Hamas that left much of Gaza in ruins and displaced nearly the entire population. The first phase focused on halting large-scale fighting, securing the release of living hostages held in Gaza, and allowing more humanitarian aid into the enclave.
Under that initial stage, all surviving hostages were freed in a series of staggered exchanges, though the remains of at least one Israeli hostage are still believed to be inside Gaza. Sporadic Israeli strikes and local clashes have continued despite the ceasefire, and aid agencies say conditions remain harsh, with many Palestinians still living in tents or crowded temporary shelters.
US officials have warned for weeks that without a clear political and security framework, the territory risked sliding back into conflict. They have pressed both Israel and Palestinian factions to move ahead with the next steps of the agreement, even as disputes linger over Israeli troop deployments, border controls and the pace of aid deliveries.
The second phase is presented by Washington as a shift from emergency measures to a more structured transition, involving changes to Gaza’s governance, security arrangements and the launch of long-term rebuilding.
Key Details
US Middle East envoy Steve Witkoff formally announced the start of phase two in a statement and in posts on social media, framing it as the next step in President Donald Trump’s 20-point plan to end the conflict in Gaza.
"We are moving from ceasefire to demilitarisation, technocratic governance and reconstruction," envoy Steve Witkoff said, outlining the start of phase two.
According to US officials, the centrepiece of this stage is the creation of a technocratic Palestinian administration to run day-to-day affairs in Gaza. The new body, known as the National Committee for the Administration of Gaza, is designed to be made up of specialists and civil servants rather than political leaders or members of armed groups.
New technocratic government
Officials familiar with the plan say the committee is expected to have around 15 members, all Palestinians from Gaza, with backgrounds in areas such as public works, health, finance, education and municipal services. The proposed prime administrator is a senior official currently serving in the Palestinian Authority, with the rest of the council drawn from professional and local governance circles.
The committee is meant to operate independently of political factions, though it is expected to coordinate with the Palestinian Authority in the West Bank on issues like salaries, customs revenues and cross-border trade. Palestinian officials involved in the talks have stressed that they want to avoid creating a permanent split between the two territories.
"We support a unified Palestinian system and reject any duplication or fragmentation between Gaza and the West Bank," one senior Palestinian official said after the announcement.
The United States has also floated the creation of an international oversight board that would supervise the new administration and help direct reconstruction funds. Invitations have reportedly been sent to several countries to join the body, but the full list of participants and the board’s exact powers have not yet been made public.
Demilitarisation and security
Alongside the new governance structure, phase two sets out a plan for the disarmament of Hamas and other armed groups in Gaza and the demilitarisation of the strip. The US has described this as a core condition for moving towards a more permanent political settlement.
The plan calls for all heavy weapons and rockets to be handed over and for armed groups to dismantle their military infrastructure inside civilian areas. It also envisions an international stabilisation force to operate in parts of Gaza, with a mandate to secure key corridors, border crossings and sensitive sites while local policing structures are rebuilt.
Washington has not yet announced which countries might contribute troops or what rules would govern their deployment. Negotiations are ongoing with regional and European states, according to diplomats involved in the talks.
A key point of tension is the future presence of Israeli forces. The framework circulated by US officials links disarmament steps to a phased withdrawal of Israeli troops from densely populated areas of Gaza, but does not set firm public deadlines. Israeli leaders have insisted they must retain the ability to act against any renewed militant activity, while Palestinian groups and regional mediators have demanded clearer guarantees on withdrawals.
Reconstruction and aid
The second phase is also meant to open the door to large-scale reconstruction. US officials say they expect billions of dollars to be pledged by international donors for rebuilding homes, schools, hospitals, roads and electricity and water networks destroyed during the war.
Humanitarian agencies report that basic food supplies have become more consistent in recent weeks, but that shelter and basic services remain severely limited. Many families still rely on makeshift tents, and disputes over which materials can enter Gaza have slowed efforts to build more durable housing.
Under the US plan, the new technocratic administration, in coordination with the oversight board, would manage reconstruction contracts, oversee tenders and try to limit corruption. International financial institutions are expected to play a major role in monitoring how funds are spent.
What This Means
The move to phase two marks a shift from a narrow focus on stopping active fighting to a broader attempt to shape what Gaza will look like in the coming years.
For Palestinians in Gaza, the most immediate impact is expected to be on governance and basic services. If the new technocratic committee can establish itself and access funds, residents could begin to see more regular power, cleaner water and the gradual repair of homes and public buildings. The scale of the damage, however, means that full reconstruction is likely to take many years.
Politically, the plan sidelines Hamas from formal control of Gaza, at least on paper, and increases the role of technocrats and the Palestinian Authority. How Hamas responds to demands for full disarmament, and whether it chooses to resist or quietly accept a reduced role, will be a central factor in whether phase two can be implemented.
For Israel, the process offers a possible path to reduce its direct military presence in Gaza while keeping strong security guarantees in place. Israeli officials have been pushing for clear mechanisms to prevent the rearming of militant groups and are expected to press for intrusive monitoring and intelligence-sharing arrangements as part of any troop pullback.
Regionally, the announcement gives mediators such as Egypt, Qatar and Turkey a new framework to work with. These governments have invested political capital in the ceasefire and will be key to persuading Palestinian factions to accept the technocratic administration and demilitarisation steps.
Internationally, donors and aid agencies will be watching how quickly the new institutions in Gaza can form and whether they are seen as legitimate by the local population. Their ability to coordinate closely with the West Bank-based Palestinian Authority will also shape wider diplomatic efforts around a longer-term political settlement.
The US administration is presenting phase two as a chance to lock in a fragile calm and start addressing the destruction and displacement caused by the war. The coming weeks will show whether the various parties involved are willing to take the political and security steps required to turn the new framework into reality.
