RS22370
U.S. Foreign Aid to the Palestinians
June 27, 2006

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Summary

Since the formation of a Hamas-led Palestinian Authority government in March 2006, the U.S. Administration has suspended its foreign assistance program in the West Bank and Gaza Strip. U.S. policy makers have stated that foreign aid cannot resume until Hamas, a U.S. State Department-designated Foreign Terrorist Organization (FTO), renounces, among other things, its commitment to the destruction of the state of Israel and the use of terrorist violence. Hamas has not complied with these demands. In the meantime, media reports suggest that the humanitarian situation for many Palestinians living in the West Bank and Gaza Strip is worsening. The Quartet (the United States, Russia, European Union, and United Nations), in conjunction with the World Bank, has attempted to forge a temporary solution that will avoid working with the Hamas-led government while providing some relief to the Palestinians. Nevertheless, some details of such an arrangement remain undetermined. The Palestinians are the largest per capita recipients of foreign aid worldwide and, with a shattered economy, are mostly dependent on external support to meet basic needs. This report will be updated as events warrant. For more information, see CRS Issue Brief IB91137, The Middle East Peace Talks, by Carol Migdalovitz.

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