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Trump does not give a shit about the Israelis or the Palestinians -- only how his actions to move the US embassy to Jerusalem matters to his evangelical base back home. They love him for it. It's a necessary move for fulfillment of Biblical prophecy. It also bought him more votes.
But putting that aside, Trump's claims of cutting the cost of the new embassy from$1 billion to $250,000 (that's thousands and not millions) conflates two different numbers. The USA has had a consular office in Jerusalem for many years, and the $250,000 is the estimate of what it would take to upgrade that building to full "temporary" embassy status. Those upgrades can be done relatively quickly, but from a political standpoint Trump could declare that the embassy complete and moved at almost any time the suits him. So May 1st is a good milestone.
The plot of land for a new purpose build embassy from the ground up has already been "saved" for years by Israel with the hope that some president will make it happen. The cost of that building (or is it a fortress?) has been bandied about as $1 billion, although in some circles the cost will end up being much higher. Anyway, Trump has either confused the two numbers or has deliberately conflated them to make him look like a deal maker.
I've read also that Sheldon Adelson has offered to help pay for the cost of the new embassy fortress which will take years to build. Maybe the fortress can be named after him. Or better yet name it the "Trump House" and put a statue of Trump in the front courtyard as a sacred place where Palestinians can congregate outside and pray.
Fact Check Trump embassy building