House Passes FY 2002
Foreign Aid Appropriations

(July 24, 2001)

The legislation includes $2.04 billion in military aid and $720 million in financial assistance for Israel, and contains the traditional provisions allowing Israel to maximize the effectiveness of the funds. The proposed law requires the State Department to analyze every six months whether the Palestinian Authority is in compliance with the Oslo agreement signed in 1993, which calls on the Palestinians to renounce violence and terrorism. If the president determines that the Palestinian leadership is not upholding its obligations, he could either shut down its Washington office, cut or reduce funding to Palestinian-controlled areas or include Palestinian groups on the State Department's list of foreign terrorist organizations. The United States is expected to send $125 million in aid this year to an international program that distributes funds to the West Bank and Gaza Strip. The language also includes a national security waiver, allowing the president to avoid imposing sanctions even if he determines that the Palestinians are violating the Oslo accords. The Senate passed its version of the bill on October 24 by a vote of 96-2.

Source: Thomas