Ramallah –In a ceremony at the Office of Palestinian Authority Prime Minister Salam Fayyad, the United States provided $150 million in budget support for the Palestinian Authority (PA). This assistance makes good on a pledge made by Secretary Rice at the Palestinian Donors Conference that took place last December and responds to the budget shortfall identified in the Prime Minister’s Palestinian Reform and Development Plan.

The Cash Transfer Agreement, which was signed by Prime Minister Fayyad, U.S. Consul General Jake Walles and U.S. Agency for International Development (USAID) Acting Mission Director R. David Harden, provides $150 million to be used for agreed purposes, subject to strict auditing and accountability mechanisms. The improvement of financial controls by the Government of Prime Minister Fayyad was an important factor in allowing the U.S. to undertake direct budgetary assistance.

After the signing, Prime Minister Fayyad said, “The U.S. contribution is a strong signal of support from the United States for this government’s efforts to build a secure, independent Palestinian state that will live in peace and security with its neighbors. We appreciate the efforts of the Bush Administration and the many Members of Congress that made this assistance possible. It will only further deepen the bond between the Palestinian and American people who share a common desire for peace in this troubled part of the world.”

Consul General Walles commented that, “The U.S. government is pleased to be able to support the Prime Minister and his government’s efforts to ensure a future of economic and political security for the Palestinian people.” USAID Acting Director Harden added that “USAID is pleased to continue its commitment to helping the Palestinian people.”

In addition to this direct support to the Palestinian budget, the U.S. continues an active humanitarian and development assistance program in the West Bank and Gaza Strip.