U.S. Congress Increases Funding for Israeli-Palestinian Peacebuilding Efforts Amid Phase II of Trump's Plan

Increased Funding for Peacebuilding

On February 6, 2026, the U.S.
Congress introduced a bill that allocates additional funding towards Israeli-Palestinian civil society and economic peacebuilding efforts. This important development comes at a time when the Trump administration is initiating the second phase of its Middle East Peace plan. The Alliance for Middle East Peace (ALLMEP) has expressed strong support for this significant boost in resources, which they see as a long-awaited priority.

The National Security, Department of State, and Related Programs (NSRP) appropriations bill includes an extra $37.5 million designated for the Nita M. Lowey Middle East Partnership for Peace Act (MEPPA). This is a notable addition to the $50 million that had previously gone unspent, bringing the total funding for MEPPA to an unprecedented $87.5 million in a single year. This funding is crucial in supporting initiatives aimed at fostering understanding and collaboration between Israeli and Palestinian communities.

According to ALLMEP, which is a coalition of 180 organizations dedicated to peace-building, MEPPA serves as a framework that aligns with the broader diplomatic efforts being pursued by the government. Specifically, it relates to point 18 of the Trump 20-Point Peace Plan, which emphasizes the need for interfaith dialogues, enhancing coexistence, and promoting shared benefits that come from peace.

Originally enacted in 2020 and signed into law by President Trump, MEPPA called for an investment of $250 million over its initial five years. This endeavor aims to create a foundation conducive to peaceful coexistence between Israelis and Palestinians, while also paving the way for a sustainable two-state solution. Additionally, it established a mechanism for private-sector investment that assists in developing the Palestinian economy in both the West Bank and Gaza regions.

Throughout its initial years, MEPPA facilitated funding for 28 peace-building projects, which included initiatives in areas such as interfaith dialogue, healthcare sharing, high-tech business incubators, and youth sports. Collectively, these projects have successfully trained numerous healthcare professionals, set up technological skill centers, and sparked partnerships among various start-ups aimed at sharing resources and ideas.

However, changes in U.S. foreign assistance policy last year resulted in the cancellation of many initial project contracts. Notably, one initiative that focused on training and connecting trauma surgeons from both communities has continued albeit under the direct supervision of the U.S. Department of State due to its importance.

With the recent increase in congressional funding, there’s now a renewed opportunity to reignite and broaden peacebuilding initiatives, which are particularly timely given the current context. Kari Reid, the U.S. Director of ALLMEP, emphasized the significance of the $87.5 million accessibility, stating that this funding enables the administration to transform diplomatic aspirations into direct action.

Reid remarked, “The demand for peace programs has consistently outweighed the available resources. This substantial funding now allows us to support those working tirelessly to build trust and cooperation between these two communities.”

Historically, during its early operations, MEPPA was only able to fund approximately 8% of the submitted proposals, meaning many deserving projects had to be sidelined. Out of the first 275 proposals submitted by civil society organizations, only 22 received funding, which hindered the advancement of numerous potential initiatives with proven benefits for community engagement and cooperation.

MEPPA has received strong bipartisan backing since its inception, highlighting a comprehensive decade-long campaign led by ALLMEP alongside esteemed allies, including notable organizations such as the American Jewish Committee, the Anti-Defamation League, AIPAC, and J Street. Additionally, recent polling by ALLMEP indicated broad public support, with 82% of Americans advocating for continued funding towards these vital peace-building efforts.

As the Alliance for Middle East Peace continues to grow, its aim remains clear: to foster a collaborative environment between Israelis and Palestinians. Through the ongoing commitment to enhance funding and the establishment of robust partnerships, ALLMEP and its affiliated organizations strive to secure self-determination and a stable framework for sustainable peace in the region.