U S Foreign Aid To The Palestinians

Contents: (1) Intro.; (2) Overview and Recent Developments; (3) Types of U.S. Bilateral Aid to the Palestinians: Project Assistance Through USAID; Types of Funding Programs; Vetting Require. and Procedures; Direct Assistance to the Palestinian Authority (PA); U.S. Security Assistance to the PA; (4) U.S. Contributions to UNRWA; (5) The $900 Million U.S. Pledge; Hamas¿s Role in a ¿Unity Gov¿t.; International Pledges and the Gaza Reconstruction Effort; (6) Proposed FY 2010 Appropriations; (7) Factors in Determining Future Aid: Effectiveness of U.S. Assistance in Strengthening the PA in the West Bank; Economic Development and International Donor Assistance; Hamas and a ¿Unity Gov¿t.¿?; Questions Regarding a Two-State Solution. Charts and tables.

U.S. aid to the Palestinians has fluctuated considerably over the past three years, largely due to Hamas's changing role within the Palestinian Authority (PA). After Hamas led the PA government for over a year, its forcible takeover of the Gaza Strip in June 2007 led to the creation of a non-Hamas government in the West Bank resulting in different models of governance for the two Palestinian territories. Since then, the U.S. has dramatically boosted aid levels to bolster the PA and President Mahmoud Abbas vis- -vis Hamas. In FY2008, Congress appropriated a total of $414.5 million in bilateral assistance to the Palestinians, the largest single year appropriation ever for the Palestinians. Because of congressional concerns that, among other things, U.S. funds might be diverted to Palestinian terrorist groups, much of this assistance is subject to legislative restrictions. For FY2009, an additional $200 million have already been appropriated for the Palestinians (with another $100 million requested by the Bush Administration). Experts advise that PA stability hinges on, now more than ever, improved security, economic development, Israeli cooperation, and the continuation of high levels of foreign assistance. U.S. contributions were made to assist emergency humanitarian efforts in the Gaza Strip during the 2008-2009 Israel-Hamas conflict, and U.S. policymakers have also spoken of possible U.S. participation in international efforts to help with the post-conflict reconstruction of Gaza subject to finding an acceptable approach vis- -vis Hamas. This report will be updated as events warrant.

This report discusses a number of issues relating to U.S. aid to the Palestinians that have relevance for Congress. Since the establishment of limited Palestinian self-rule in the West Bank and Gaza Strip in the mid-1990s, the U.S. government has committed more than $5 billion in bilateral economic and non-lethal security assistance to the Palestinians.

Since the establishment of limited Palestinian self-rule in the West Bank and Gaza Strip in the mid-1990s, the U.S. government has committed more than $5 billion in bilateral economic and non-lethal security assistance to the Palestinians, who are among the world's largest per capita recipients of international foreign aid. Successive Administrations have requested aid for the Palestinians in apparent support of (1) promoting the prevention or mitigation of terrorism against Israel; (2) fostering stability, prosperity, and self-governance in the West Bank that may aid Israeli-Palestinian diplomatic prospects; and (3) meeting humanitarian needs. The long-term utility of U.S. aid in encouraging regional stability and Palestinian economic and political self-sufficiency might depend to some extent on progress toward a political solution that addresses Palestinian national aspirations and Israeli security demands. U.S. policy priorities regarding aid to the Palestinians have developed partly as a result of the factional and geographical split between the Fatah-led Palestinian Authority (PA) in the West Bank and Hamas in the Gaza Strip, which took place in June 2007. From FY2008 to the present, annual Economic Support Fund (ESF) assistance to the West Bank and Gaza Strip has averaged around $400 million, with much of this going toward U.S. Agency for International Development (USAID)-administered project assistance (through grants and contracts), and the rest toward budget support for the Palestinian Authority (PA). Annual International Narcotics Control and Law Enforcement (INCLE) non-lethal assistance for PA security forces and the criminal justice sector in the West Bank has averaged around $100 million. In line with Obama Administration requests, baseline funding levels for both ESF (including ESF-Overseas Contingency Operations, or ESF-OCO) and INCLE have declined since FY2013, with FY2017 requested annual assistance amounts of $327.6 million for ESF and $35 million for INCLE. Because of congressional concerns that, among other things, U.S. aid to the Palestinians might be diverted to Palestinian terrorist groups, the aid is subject to a host of vetting and oversight requirements and legislative restrictions. In addition to bilateral aid, the United States is the largest single-state donor to the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). A number of issues relating to U.S. aid to the Palestinians have relevance for Congress, including: The general effectiveness of aid and possible impacts of informal congressional holds or potential changes in assistance levels or types within both a regional and an international context. Concerns regarding Israeli-Palestinian violence, the reliability and capacity of U.S.-supported PA security forces, and PA-Israel security coordination. Legislative reductions in aid amounts in connection with official Palestinian payments for individuals implicated in terrorism and/or their families. Whether and how to support a PA government approved by Hamas, such as the government that was installed in June 2014 pursuant to a Fatah-Hamas agreement and was partly changed-apparently without Hamas input-in 2015. Addressing Palestinian initiatives with respect to international fora such as the United Nations and International Criminal Court (ICC). Dealing with the multifaceted security, political, economic, and humanitarian challenges presented by the Gaza Strip.

Since the establishment of limited Palestinian self-rule in the West Bank and Gaza Strip in the mid-1990s, the U.S. government has committed approximately $5 billion in bilateral assistance to the Palestinians, who are among the world's largest per capita recipients of international foreign aid. Successive Administrations have requested aid for the Palestinians in apparent support of at least three major U.S. policy priorities of interest to Congress.

The West Bank and Gaza are comprised of about 2,400 square miles and have a combined population of 4.3 million people. The Palestinian Authority and Israel administer areas within the West Bank, and the Hamas-controlled de facto authorities operate in Gaza. A negotiated two-state solution to the Israeli-Palestinian conflict is a core U.S. national security objective. The U.S. government's foreign assistance program in the West Bank and Gaza is designed to advance progress toward the two-state solution by helping the Palestinian Authority build the institutions of a future Palestinian state, creating an atmosphere that supports negotiations, and improving the everyday lives of Palestinians, thereby contributing to the overall stability and security of the region. The U.S. government has provided assistance to the West Bank and Gaza both bilaterally and multilaterally for several decades. According to the State Department, the U.S. government is one of the largest donors to the Palestinian Authority, providing about $3 billion in bilateral assistance for fiscal years 2008 through 2012 to support education and social services, economic development, and humanitarian assistance, among other sectors. This book describes (1) the nature and scope of U.S. government involvement with the Palestine Investment Fund (PIF), and (2) the processes for vetting PIF and other non-U.S. entities. To address these objectives, the Government Accountability Office (GAO) reviewed and analyzed annual reports, U.S. antiterrorism policies, agency-specific vetting policies and procedures, and applicable program agreements obtained from PIF and relevant U.S. agencies and their implementing partners.

U.S. aid to the Palestinians is intended to forward at least three major U.S. policy priorities of interest to Congress: 1) combating, neutralizing, and preventing terrorism against Israel from the Islamist group Hamas and other militant organizations; 2) creating a virtuous cycle of stability and prosperity in the West Bank that inclines Palestinians, including those in the Hamas-controlled Gaza Strip, towards peaceful coexistence with Israel and prepares them for self-governance; and 3) meeting humanitarian needs and preventing further destabilization, particularly in the Gaza Strip. This book examines U.S. foreign aid to the Palestinians wherein because of congressional concerns that U.S. funds might be diverted to Palestinian terrorist groups, this aid is subject to a host of vetting and oversight requirements and legislative restrictions. (Imprint: Nova)

Contents: (1) Intro.; (2) Background and Overview: Oslo-Era Security Assistance; Backslides and Delays in Reform: 2000-2007; USSC/INL Mission: 2007-2010; Future Prospects; (3) PA Security Org.; (4) How U.S. Efforts are Coordinated: U.S. Training Assistance to PA Forces: Forces Being Trained; Trainee Recruitment and Vetting; Substance of Training; U.S. Equipment and Facilities Assistance; (5) Deployment of U.S.-Sponsored, JIPTC-Trained PA Forces: Jenin, Hebron, Qalqilya, and Other Key Areas; During the Gaza Conflict; Assessing the Impact of U.S. Assistance; (6) Criminal Justice Sector Reform: The ¿Jenin Pilot Program¿ and Other U.S. and Internat. Efforts; (7) The Road Ahead: Challenges and Obstacles; (8) Options for Congress