POMED Notes: Hearing on U.S. Aid to the Palestinian Authority

On Tuesday, July 12, the Subcommittee on the Middle East and South Asia held the first of two hearings on “Promoting Peace? Reexamining U.S. Aid to the Palestinian Authority.” The hearing was presided over by Chairman Steve Chabot (R-OH), and ranking member Gary Ackerman (D-NY). Also in attendance were Rep. Jeff Duncan (R-SC), Rep. Dennis Cardoza (D-CA), Rep. Brian Higgins (D-NY), Rep. Tom Marino (R-PA), Rep. Gerald E. Connolly (D-VA), Rep. Ben Chandler (D-KY), Rep. Dana Rohrabacher (R-CA), and Rep. Gus Bilirakis (R-FL). The witnesses were Jacob Walles, Deputy Assistant Secretary of State, Bureau of Near Eastern Affairs; Lieutenant General Michael Moeller, United States Security Coordinator for Israel and the Palestinian Authority, Department of State; and George A. Laudato, Administrator’s Special Assistant for the Middle East, U.S. Agency for International Development.

For full notes, continue reading. Or click here for the pdf.

Chairman Steve Chabot (R-OH) opened the hearing by remarking on the need to reassess and possibly readjust U.S. aid to the Palestinian Authority (PA), in light of the agreement between Hamas and Fatah, which he views as a “very troubling development.” Rep. Chabot noted that he is “extremely impressed” with Gen. Moeller’s security programs, and would regret if these programs were to change. Rep. Gary Ackerman (D-NY) also provided opening remarks, focusing on the need to resolve the current ambiguity within the PA, and the potential of U.S. aid to get the peace process back on track. Rep. Dennis Cardoza (D-CA) reiterated Chabot and Ackerman’s remarks. Rep. Jeff Duncan (R-SC) thanked the committee for allowing him to attend the hearing, and encouraged members to sign a letter he has drafted to the House Committee on Appropriations formally requesting funding restrictions to the Palestinian Authority. Rep. Brian Higgins (D-NY) noted that cooperation with Hamas destroys the viability of aiding the PA.

Jacob Walles testified first, focusing on the crucial role of U.S. aid programs in promoting peace in the region and serving U.S. security interests. Regarding U.S. interests, Walles said, “we strongly believe that building Palestinian government institutions and a viable Palestinian economy serve these interests and are essential for peace.” Aid programs have focused on building transparent, accountable, and credible institutions. Walles emphasized that at present, the PA government “deserves our continued support,” but if a new government with a Hamas presence emerges, “we will evaluate it carefully, and our assistance will be guided by all relevant U.S. law.”

Next, Lieutenant General Michael Moeller testified on the importance and success of the program he oversees as U.S. Security Coordinator for Israel and the Palestinian Authority (USCC). Despite recent Fatah-Hamas reconciliation efforts, “there have been no changes in personnel, no changes in security practices on the ground, and, I should emphasize, no change in the chain of command.” The program adopts a holistic approach, and has made significant progress in professionalizing the PA security forces. Moeller concluded by emphasizing that the program has a “demonstrated record of success,” and U.S. security assistance efforts should be sustained in the interest of regional stability, Palestinian welfare, and national security.

George Laudato testified last, outlining U.S. assistance programs that support Palestinian capacity building. USAID programs are based on a solid policy formula that emphasizes good governance, health and education, economic development, infrastructure, and humanitarian assistance. After elaborating on examples of USAID programs, Laudato noted the stringent oversight procedures and vetting process, designed to prevent U.S. assistance from funding terrorists.

In response to a question from Rep. Chabot regarding aid from the region, Walles noted that aid from Arab countries to Palestine has declined in recent years, causing significant problems for the Palestinian Authority. Chabot requested a pledge from Walles that the U.S. would veto a U.N. resolution on Palestinian statehood, and in response Walles deferred to President Obama’s position that the U.N. is not the “correct path” for Palestine to realize statehood.

Walles also noted in response to a Rep. Ackerman’s concerns regarding Hamas that the U.S. is not opposed to a Palestinian unity government, as long as it promotes peace. Rep. Ackerman predicted that if a Fatah-Hamas agreement proceeds, the U.S. is likely to overreact. Walles reiterated that no aspect of a power-sharing agreement has been implemented, and prospects for the future are very uncertain. And Moeller argued that cutting off security assistance would “immediately fault” U.S. progress, and Israel and the PA would be very concerned over a cutoff, viewing it as a breach of faith. Finally, Laudato echoed these remarks by noting the importance of U.S. programs at the institutional level, and the threat of a cutoff to the peace process.

Rep. Rohrabacher suggested that current aid programs are perpetuating an unacceptable status quo, and with preconditions aid could be used as a tool in promoting negotiations and resolving the right to return issue. Walles denied that aid programs are reinforcing the status quo, and noted that programs have “accomplished a lot,” significantly decreasing terrorist attacks for example. Rep. Rohrabacher later voiced his opinion that the development approach has failed, and the peace process should be viewed as a policy impasse.

Rep. Connolly requested clarification on the amount of aid going to the West Bank and the Gaza Strip, and mechanisms for oversight and cooperation with a potentially Hamas-led government. Laudato clarified that USAID works with the government in the West Bank, but in Gaza programs are run through international nongovernmental organizations that are monitored closely. Laudato emphasized that USAID does not work with the Hamas government in Gaza, and will not allow Hamas leaders to control or shape aid in the future. Moeller noted that his security programs do not operate in Gaza, and while it is impossible to predict future political developments, he would not rule out a possible cessation of activities in the West Bank if necessary.

Rep. Chandler expressed similar concerns on the effectiveness of aid as a tool for promoting peace, and Rep. Chabot said that many are becoming “more and more skeptical” of U.S. assistance. Walles agreed that assistance programs should be based on cooperation, noting that all U.S. aid is based on support for the two-state solution. Assistance gives the U.S. leverage, and provides practical benefits in regards to security and institution building. And Laudato emphasized that aid programs are promoting cooperation on crucial issues, including water, building roads, and developing the private sector in Palestine.