The United States has been a significant financial contributor to Palestine for decades, with aid flowing through various channels and experiencing notable shifts over time. Since 1950, over $6 billion in US funds have been directed to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). This substantial contribution positions the U.S. as one of UNRWA’s largest supporters, alongside Germany, the European Union, and Sweden, who collectively account for a significant 61.4% of the agency’s total financial resources. For those interested in a deeper dive, a comprehensive UNRWA donor list dating back to 2006 provides further details on funding trends.
Direct financial assistance from the U.S. to the Palestinian territories commenced in 1994, coinciding with the initial agreements for Palestinian self-rule in Gaza and the West Bank. This bilateral aid has accumulated to over $5 billion. Combining both UNRWA contributions and direct aid, the U.S. has channeled over $11 billion into Palestine since 1950. To put this in perspective, US aid to Israel during a comparable period is significantly larger, totaling approximately $318 billion since the end of World War II.
The Evolution of Palestine Money: Changes in US Aid
US aid to the Palestinian territories saw a notable increase in 2007. This shift occurred in the aftermath of the political instability where the coalition government between Hamas and Fatah within the Palestinian Legislative Council dissolved. The ensuing conflict led to Hamas assuming control of Gaza, altering the landscape of Palestinian governance and influencing international aid strategies.
However, a 2018 report from the Congressional Research Service highlights a trend of reduced or delayed US aid to Palestinians starting around 2010. Both the executive and legislative branches of the US government implemented various measures that curtailed financial assistance during this period.
These reductions were enacted through policy changes under Presidents Obama and Trump. Baseline funding for the Economic Support Fund (ESF) and the International Narcotics Control and Law Enforcement programs – which supported the Palestinian Authority (PA) in the West Bank – were lowered. These programs previously provided crucial assistance in training, reforming, and equipping PA civil security forces loyal to President Mahmoud Abbas.
In one of his final acts in office, President Obama authorized a $221 million aid package to the Palestinian Authority. However, this aid was subsequently blocked by the incoming Trump administration, signaling a change in US policy towards Palestine Money and aid distribution.
The year 2018 witnessed further significant cuts. The Trump administration slashed over $200 million in bilateral Palestinian aid and additionally reduced UNRWA funding by $300 million. These measures represented a substantial decrease in the flow of Palestine money from the US.
The following year, 2019, marked a complete freeze of US aid to the West Bank and Gaza. This drastic measure was triggered by the implementation of an anti-terrorism law. This law broadened the scope for Americans to file lawsuits in US courts against recipients of foreign aid from their country, alleging complicity in “acts of war.” Fearing potential legal repercussions, the Palestinian Authority reportedly requested the U.S. State Department to halt all aid, as detailed in a BBC report.
In 2020, an amendment to the anti-terrorism law offered a slight shift. While maintaining jurisdiction over individuals or entities making payments to convicted terrorists or their families, or those operating in the US on behalf of Palestinian organizations, it opened avenues for resuming aid under specific conditions.
Palestine Money Today: The Current Aid Landscape
A significant reversal in policy occurred in April 2021 when President Biden resumed US aid to the Palestinian territories. This move signaled a return to supporting Palestinian needs and development. Subsequently, in March 2022, Congress approved a $219 million aid package for Palestinians, further solidifying the renewed commitment. In July 2022, the Biden administration announced an additional $200 million contribution to UNRWA, reinforcing its support for the agency’s vital work.
USAID reported spending $150 million in the Palestinian territories in 2022. Looking ahead, USAID has outlined plans to allocate $500 million between 2021 and 2024 to support the Palestinian people across various sectors.
In response to the escalating Israel-Hamas conflict and the dire humanitarian situation in Gaza, President Biden announced $100 million in humanitarian aid in October 2023. This emergency funding aims to address the urgent needs of over a million displaced and conflict-affected individuals, providing essential resources such as clean water, food, medical care, and hygiene support, as stated in a White House announcement.
The flow of Palestine money from the US has been a complex and evolving issue, heavily influenced by political dynamics and security considerations. While the US remains a significant donor, the levels and conditions of aid have fluctuated considerably, reflecting the intricate and often shifting relationship between the United States, Palestine, and the broader region.
