President Donald Trump’s administration has given an ultimatum to Egypt, warning that the nation faces losing billions of dollars in U.S. aid if the government refuses to take in refugees from Gaza.
The Trump administration warned Egypt that it could lose billions in aid when the U.S. offers the same deal to other nations.
It comes as the U.S. government is negotiating a deal for Egypt to accept 700,000 Gazan refugees.
The United Arab Emirates (UAE) President Mohammed bin Zayed Al Nahyan met with Egyptian President Abdel Fattah El-Sisi in Cairo over the weekend to discuss the plan.
The UAE leader conveyed the offer from the U.S., according to a UK and Qatari media source.
Egypt’s struggling economy could benefit from the sizeable aid package.
However, if the Egyptian government waits much longer to accept the deal, the U.S. will offer it elsewhere, a source close to the discussion said.
Cairo could also lose existing aid from the U.S. of $1.3 to $1.5 billion if it refuses.
So far, Cairo has resisted the idea.
Trump said last month that he wants to resettle Gaza’s entire population and turn the area into an economic hub for the Middle East, with the U.S. in charge of the territory.
If he’s able to do so, it will be a major transformation of the entire region and an entirely new Middle East strategy.
The area is still a battleground as Israel tries to eradicate Hamas terrorists using it for a base.
Many civilians have been killed by Israeli forces because Hamas has used them as human shields.
Hamas has hidden war resources in civilian locations like schools and hospitals.
Israeli Defense Minister Israel Katz has announced a voluntary resettlement program in Gaza.
The plan is headed by a new department and is in alignment with Trump’s stated goals.
“I welcome President Trump’s bold initiative, which can create extensive opportunities for those in Gaza who wish to leave, assist them in resettling in host countries, and support long-term reconstruction efforts in a demilitarized, threat-free Gaza after Hamas—an effort that will take many years,” Katz stated in a post on X.
Katz further said he expects the governments of Spain, Ireland, Norway, and others who have criticized Israel for attacking civilian areas to take in the refugees or be accused of hypocrisy, and said that Canada was already forming a resettlement plan.
Polling has indicated that a majority of Gazans, 52%, would leave if they could.
Of those, 14% said they would leave permanently, and 38% said they would temporarily relocate.
A Gallup poll of Gazans found that, if given the opportunity to leave Gaza, more than half of them would leave—either temporarily or permanently pic.twitter.com/YOfk7VnFTh
— Amit Segal (@AmitSegal) March 21, 2025
Relocating the citizenry of Gaza would solve several problems for Israel.
It would reduce civilian casualties, make it easier to find and eliminate Hamas terrorists, and deprive the terrorists of resources that are currently being taken from civilians.
A ceasefire ended before the deadline earlier this month when Hamas failed to release hostages as agreed.
