The IDF informed the limited security cabinet on Sunday that building a “humanitarian city” in Gaza—intended to house hundreds of thousands of Palestinians—could take as long as a year and cost up to 15 billion shekels, significantly more than the six-month timetable previously projected.
According to sources, the revised forecast reportedly angered Prime Minister Benjamin Netanyahu, who demanded from military commanders “a more realistic” plan. He directed senior officers to outline how the facility could be constructed more quickly and at lower cost.
According to attendees, the IDF appears reluctant to proceed with the controversial proposal—which has drawn international criticism—and may have submitted an optimistic timeline to appease Netanyahu and his cabinet. Debate during the session also centered on funding, with officials acknowledging that Israel would initially bear the full expense.
Earlier versions of the plan envisioned a large tent camp capable of accommodating up to half a million Gaza residents, effectively preventing them from returning to northern Gaza. Critics within the military, even before Sunday’s meeting, argued that the initiative could mark the beginning of military governance in Gaza and the forced displacement of civilians.
IDF Chief of Staff Eyal Zamir reportedly clashed with Netanyahu and Finance Minister Bezalel Smotrich, warning that diverting troops to prepare the site would detract from the military’s core objectives, including dismantling Hamas and securing the release of hostages. Netanyahu nonetheless instructed the IDF to submit a preliminary plan within days, and Smotrich approved initial funding for engineering preparations.
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Officials say the estimated expense reflects the need to provide adequate shelter, health care—including hospitals—reliable food supplies for an extended period, and possibly schools.
According to cabinet sources, Israel expects to be reimbursed later by Arab states—such as Saudi Arabia and the UAE—once they assume control of Gaza post-conflict. Still, some insiders say they doubt the camp will ever be built.
The Finance Ministry issued a statement accusing opponents of the plan of inflating costs and stoking fears in order to undermine efforts to separate civilians from Hamas. A spokesperson for Smotrich confirmed that millions have already been allocated for groundwork, saying: “The war has already cost hundreds of billions without a definitive result, mostly because of the aid reaching Hamas. The correct administration of civilians, and suffocating Hamas is the only effective way to victory. If anyone thinks they can manipulate the budget, they should abandon that idea now.”