Details are murky and no final agreement has been reached, but the plan is under serious enough consideration that the administration has discussed it with Libyan leadership.
In exchange for the resettling of Palestinians, the administration would potentially release to Libya billions of dollars of funds that the U.S. froze more than a decade ago, those three people said.
Several factions in the Libyan government have warm relations with Turkey. Turkey has so far antagonized with Israel over the matter of Gaza. It's not hard to predict that factions in the Libyan government, upon Trump's likely blackmail (he can do little else) to accept the deportation of million ethnically cleansed Palestinians, would receive a phone call from their Turkish, Quatari, Algerian and Pakistani backers, telling them to "stop discussing that nonsense" and asking them to reject Trump. So, most likely the Libyan government will fail to reach a consensus.
The second line (politics):
The Libyan parliament will not support it. Parliament may remove the government if it's doing something unpalatable
The third line (war):
Libyan people will not support it. Various factions may rebel again and restart the civil war if they see the government acting seriously against their wishes.
The US Military was a well-oiled machine before January 20, 2025. Now it's a machine whose oil is driving more than all other machines and is about six months past its due date for an oil change. They've announced a bunch of plans for more trips, but nobody's changing the oil anymore.