Aid and Assistance Funds to the Palestinian Authority

Answer: In Fiscal Year 2003, USAID's regular budget for the West Bank and Gaza was $74.5 million. This assistance is provided via contractors and non-governmental organizations in the West Bank and Gaza for specifically identified projects and initiatives. USAID has requested another $75 million for Fiscal Year 2004.

The spring Emergency Wartime Supplemental Act provided an additional $50 million dollars that was then parceled out in two parts:

• A $30 million USAID "quick impact" funding initiative was announced July 2. This funding was used to support -- via contractors and NGOs -- resumption of critical public services, private sector activities, and reconstruction of damaged roads in the West Bank and Gaza.
• The remaining 20 million was provided directly to the Palestinian Authority – a first (announced July 9). This decision was made because of the credibility that Palestinian Finance Minister Fayyad brought to the Palestinian Authority budget process. His success in building a credible public finance system has been recognized by Israel, which resumed its tax revenue transfers to the Palestinian Authority in December 2002. This $20 million was to be used to finance utility payments (up to $9 million) and repair and rehabilitate municipal infrastructure (at least $11 million), and is subject to a variety of controls and auditing requirements.

In addition, the U.S. gave the UN Relief and Works Agency for Palestine Refugees in the Near East $129 million in 2003 -- $88 million in regular annual contributions and another $41 million in response to UNRWA’s two emergency appeals -- which amounts to about 30% of the Relief and Works Agency's total annual funding.