Israeli Withholding Funds to Palestinian Authority; US Aid in Question

Israel is witholding tax transfers to the Palestinian Authority (PA), which account for about 70 percent of its budget. The U.S. State Department said it would continue its assistance for now and assess its position based on the new Palestinian government’s policies. Representative Gary Ackerman (D-NY), ranking member of the House Subcommittee on the Middle East and South Asia, stated, “I don’t think there is any will on the part of the administration or the Congress to provide funds to a government that is dominated by a dedicated terrorist organization.”

Palestinian President Mahmoud Abbas argued that the reconciliation should not compromise peace talks that are conducted through the Palestinian Liberation Organization (PLO), a transnational umbrella organization; whereas Hamas is joining the government of the PA. Abbas assured that Hamas militias would not be allowed to set up in the West Bank, that “no party activists” would take part in government, and that Palestinian Prime Minister Salam Al-Fayyad may still play a role.

Concerning US assistance to Palestinian security forces, the New York Times summarizes: ”Since 2005… the United States has spent $542 million to train the Palestinian Authority’s National Security Force, provide it nonlethal equipment and refurbish its camps and buildings. That included $150 million in the current fiscal year.” The article draws an analogy to 2006, when Congress blocked similar funding to the Lebanese military after parts of it were reported to have allied with Hezbollah. It adds that while there has been suspicion of the aid to the PA, it has also been credited with professionalizing its security services.