The United Kingdom, Australia, and Canada announced on Thursday the establishment of a new international fund dedicated to supporting Israeli-Palestinian peacebuilding initiatives. Each country is contributing approximately $1.3 million, bringing the initial total to around $5.3 million, with plans to invite additional nations to participate in the effort.
The joint initiative, referred to as the “Peace Fund,” aims to back programs that promote a two-state solution, reduce divisions, strengthen civil society, and encourage dialogue and cooperation within and between Israeli and Palestinian communities. The fund’s creation is rooted in a proposal made more than a decade ago by The Alliance for Middle East Peace (ALLMEP), a coalition of over 170 civil society organizations operating in Israel and the Palestinian territories.
ALLMEP drew inspiration from the International Fund for Ireland, which played a crucial role in the peace process that culminated in the Good Friday Agreement, ending decades of conflict in Northern Ireland. One of the key factors in that fund’s success was its status as a neutral and credible entity that facilitated government contributions to grassroots peacebuilding.
John Lyndon, executive director of ALLMEP, recalled efforts dating back to 2008-2009 to challenge the prevailing stalemate in Israeli-Palestinian relations. These efforts eventually contributed to the 2020 bipartisan passage of the Nita Lowey Middle East Partnership for Peace Act (MEPPA) in the United States, which pledged $250 million over five years for grassroots programs, including those led by ALLMEP. However, in 2025, an executive order from then-President Donald Trump suspended USAID funding, including MEPPA grants.
Despite this setback, ALLMEP retained some funds from earlier allocations, and the European Union provided interim financing amounting to 18 million euros (approximately $20.7 million). With U.S. funding now uncertain, the newly formed international Peace Fund represents a significant step toward realizing the long-envisioned support mechanism for grassroots peace efforts.
Lyndon emphasized that the fund would finance both short-term initiatives—such as educational campaigns that raise awareness of diplomatic opportunities—and longer-term projects aimed at combating marginalization, addressing trauma, and fostering new generations open to peace and equality. Among the recipients expected to benefit are the Hand in Hand bilingual Hebrew-Arabic schools, which have faced high demand and waiting lists, as well as organizations like the Jerusalem Youth Chorus, Givat Haviva education center, and AJEEC, which focuses on Arab community leadership in the Negev.
ALLMEP aims for the fund to function as a clearinghouse, enabling smaller and mid-sized countries to contribute directly while larger donors, including the EU and the United States, might coordinate through the mechanism without necessarily funneling all funds through it. This structure is intended to boost efficiency in directing resources to the most effective initiatives.
In addition to institutional projects, the fund will support efforts by grassroots organizations such as Mehazkim, Peace Now, Combatants for Peace, and the Parents Circle-Families Forum, which conduct cross-border educational and advocacy campaigns engaging both Israeli and Palestinian societies.
Polling data presents a mixed picture of public opinion toward peace. ALLMEP’s research indicates that 70% of Israelis and 80% of Palestinians are open to regional normalization coupled with the establishment of a Palestinian state. However, a September 2025 Gallup survey found more limited support for a two-state solution, with only 33% of adults in the West Bank and East Jerusalem and 27% of Israelis expressing endorsement, while opposition stands at 55% and 63%, respectively. These figures contrast with 2012 data, when a majority of Israelis supported the two-state framework.
Despite the challenges, Lyndon expressed optimism that the Peace Fund can help transform latent support into tangible progress, linking grassroots activities with broader diplomatic efforts in pursuit of a sustainable Israeli-Palestinian peace.