Trump Administration Proposes $5 Billion Gulf Reconstruction Fund

The Trump administration has proposed committing $5 billion to a new fund aimed at rebuilding Middle East energy infrastructure damaged during the seven-month war with Iran and developing export routes that bypass the Strait of Hormuz, according to reports citing U.S. and regional officials and internal documents. Washington is seeking matching contributions from eight regional partners, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan, with the aim of creating a $10 billion investment vehicle. The proposed fund would be called the Partnership for Allied Trust and Construction, or PACT. The U.S. Development Finance Corporation would manage it under the proposal. U.S. officials said talks remain underway, participation has not been finalized, and terms could still change. It remains unclear whether all eight governments will participate. No official White House announcement has been issued, and one wire service said it could not independently confirm the reporting that first detailed the plan.