Yair Lapid unveils his bold plan for Gaza – with Egypt a key player

Yair Lapid presented a provocative new plan for Gaza’s future today at a conference hosted by the Foundation for Defense of Democracies (FDD), offering a complementary framework to President Donald Trump’s recent proposals. At the heart of Lapid’s vision: Egypt would assume responsibility for managing the Gaza Strip for 15 years, while the international community and regional allies would erase Egypt’s staggering $155 billion external debt.

Lapid’s plan, developed over months with senior Israeli diplomatic and security figures, was unveiled publicly for the first time during his U.S. visit, where he’s been meeting with Trump administration officials and senior senators. It aims to address the intractable “day after” question in Gaza, following nearly 18 months of war that has left the enclave in ruins and Hamas still clinging to power.

“After almost a year and a half of fighting, the world is stunned to find Hamas still ruling Gaza,” Lapid said in his opening remarks. “No one in Netanyahu’s government has offered a realistic alternative. For political, religious, and sometimes messianic reasons, they’ve failed to take steps toward an effective governance structure that could push Hamas out.”

Lapid outlined two pressing threats to Israel’s southern border: the need for a new governance solution in Gaza—where neither Hamas, the Palestinian Authority, nor Israeli occupation is viable—and Egypt’s teetering economy, burdened by a $155 billion debt that jeopardizes its stability and, by extension, the region’s. His solution? Hand Gaza’s reins to Egypt temporarily, bolstered by a global financial lifeline.

“Egypt would take responsibility for managing Gaza for 15 years,” Lapid explained. “In parallel, its external debt would be covered by the international community and its regional allies. During this period, Gaza would be rebuilt, setting the stage for self-governance. Egypt would be the central player, overseeing reconstruction and strengthening its own economy in the process.”

He pointed to historical precedent: Egypt controlled Gaza from 1948 to 1967 under Arab League backing, acting as a temporary custodian for Palestinians. “This is what needs to happen again today,” Lapid argued.

The Rationale

Lapid framed his plan as a pragmatic fix to interlocking challenges:

The Blueprint

Lapid’s model unfolds in eight steps:

A Complement to Trump?

Lapid’s plan dovetails with Trump’s recent calls for the U.S. to “take over” and redevelop Gaza, though it sidesteps his more controversial push to permanently displace Palestinians. Where Trump envisions a “Riviera of the Middle East” under U.S. stewardship, Lapid offers Egypt as the on-the-ground manager, leveraging debt relief as a carrot—an idea that might appeal to Trump’s deal-making instincts while avoiding direct American occupation. Lapid’s pitch could thread the needle: stabilizing Gaza without mass displacement, while giving Egypt a lifeline to avert economic collapse.

But hurdles loom. Egypt’s President Abdel Fattah al-Sisi has historically resisted deep involvement in Gaza, wary of importing instability. The UN resolution Lapid envisions would face veto risks from Russia or China. And Netanyahu’s coalition, rife with hardliners dreaming of Gaza settlements, might balk at ceding control.

For now, Lapid’s taken his case to Washington, betting on American backing to turn vision into reality. Whether it’s a game-changer or a pipe dream, it’s a rare concrete plan in a sea of inaction—and a challenge to Israel’s government to step up or step aside.

Minister Karhi was absolutely shocked by Lapid's plan. He slammed it, saying, "Is this for real?! The U.S. President offers the first genuine solution - completely ending the Gaza threat to Israel and relocating the Gazan population (willingly or otherwise).

And what does Yair Lapid do? Heads in exactly the opposite direction!

Instead of bolstering international efforts to solve the problem once and for all, he's proposing to make it permanent - with more "Egyptian oversight." Have you learned nothing from history? Don't you understand how Hamas smuggled all their weapons into Gaza over the past twenty years?

How can someone be so politically opportunistic that they actively undermine Israel's national interests, especially during wartime, and precisely when we're dealing with the most supportive American administration ever?!

Lapid, I have to ask - are you opposing the government, or are you opposing Israel itself?"