The Cable

Fight over aid to Palestinian Authority heating up

A group of House lawmakers is making the case for continuing U.S. support to the Palestinian Authority (PA), despite the Palestinian bid to seek full membership in the United Nations.

"Maintaining U.S. assistance to the Palestinian Authority is in the essential strategic interest of Israel and the United States," wrote 44 lawmakers, all Democrats, in a letter today to House Appropriations State and Foreign Ops subcommittee heads Kay Granger (R-TX) and Nita Lowey (D-NY). The letter was spearheaded by Reps. David Price (D-NC) and Peter Welch (D-VT).

Ever since the Palestinians began their statehood drive this summer, Congress has been attacking the $550 million of annual aid given to the PA by U.S. taxpayers. For fiscal 2011, Congress had already provided the Palestinians with about $150 million in direct budget support -- also known as cash -- but $200 million in security funding and about $200 million in humanitarian funding has been held up.

House Foreign Affairs Committee chairwoman Ileana Ros-Lehtinen (R-FL ) released her hold on the security funding last week, but she and Granger are still holding up the non-security funding. Also, Congress is set to consider whether to allocate a whole new tranche of aid to the PA as part of the upcoming negotiations over the fiscal 2012 State and foreign ops spending bill. That bill could come up in the Senate this week or next, leading to a House-Senate conference behind closed doors to iron out a final compromise bill.

"We understand the developments that have led some to call for a suspension or termination of aid to the PA," the 44 lawmakers wrote. "However, these legitimate concerns must be weighed against the essential role that U.S. assistance to the PA plays in providing security and stability for Palestinians and Israelis as well as critical humanitarian relief to the Palestinian people - and the potential consequences if this assistance is terminated."

Currently, the House version of next year's foreign aid bill would terminate all aid to the PA unless the Palestinian government drops its statehood bid at the United Nations and enters into direct negotiations with Israel. The Senate version is less strict; it would only withdraw the funding if the Palestinians actually succeed in joining the United Nations, which isn't likely due to the U.S. veto power at the Security Council. The Senate bill would also give the president a waiver over cutting aid to the PA.

"The prospect of continued assistance depends on the actions of Palestinian leadership, which can choose to pursue a path of direct negotiations rather than a counterproductive and destabilizing push for statehood through the UN and affiliated agencies," Matthew Dennis, spokesperson for Lowey, told The Cable.

"The chairwoman takes the views of all members into consideration," said Matt Leffingwell, spokesman for Granger.

President Barack Obama's administration has been clear that it wants U.S. aid to the PA to continue, because the assistance impacts Israeli security. Sen. Lindsey Graham (R-SC), the ranking Republican on the Senate Appropriations State and Foreign Ops subcommittee, told The Cable last week that he agrees that aid to the PA is important but will fight to end it anyway because of the politics surrounding the issue.

"I don't think that's in our near-term or long-term interest, but that's what's going to happen, that's where this thing is headed," Graham said.

The Democratic lawmakers who are making the case for the aid, along with some non-governmental organizations such as J Street, want to make sure top appropriators know that there is some support for aid to the Palestinians in Congress.

"The Price-Welch letter puts down a marker that there is a difference of opinion on whether aid to the PA should continue in Congress," Dylan Williams, J Street's director of government affairs, told The Cable today.

Williams said that many of the letter's signers supported House Resolution 268, passed in June, which threatened to cut off aid to the PA if it continued to seek U.N. membership. But seeing as how the Palestinians were able to join UNESCO with overwhelming international support, forcing the United States to stop contributing to that organization, he said those threats no longer makes sense.

"The situation has changed since HRes 268 and the bid to keep the Palestinians away from the United Nations has failed," Williams said.

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