Biden Restarts Aid (Blood Money!) to Palestinians While Hedging on Jerusalem Capital Status

Last week, the Biden administration quietly resumed sending money to the West Bank and Gaza, pledging close to $100 million in aid, as part of the President’s campaign promise to regain the “trust and goodwill” of the Palestinian community. On Monday, US State Department spokesman Ned Price dodged giving a clear answer when asked about the administration’s position on Jerusalem as Israel’s capital.

In back-to-back moves, the administration on Thursday and Friday announced $15 million in aid to help Palestinians combat COVID-19 and possibly as much as an additional $75 million in economic support.

“We continue to believe that American support for the Palestinian people, including financial support, it is consistent with our values. It is consistent with our interests. Of course, it is consistent with the interests of the Palestinian people. It’s also consistent with the interests of our partner, Israel, and we’ll have more to say on that going forward,” Price said of the restart of funds flowing into Palestinian communities.

The Biden administration seems to be counting on the influx of assistance to entice the Palestinians back to the negotiating table with Israel and the US to establish peace in the Middle East.

US law prohibits American aid to fund projects with the Palestinian Authority as long as they continue “pay for slay”– paying salaries to perpetrators (or their families) of attacks on Israel or the US.

Recently, the Government Accounting Office (GAO) found that the US Agency for International Development (USAID) had not properly vetted all of its Palestinian funding between 2015 and 2019, when President Donald Trump cut off much of the aid.

USAID notified Congress that most of the $75 million in assistance will go for short-term projects and assured them that “its assistance does not go to Hamas or other terrorist organizations.” The money is earmarked to help support the health care sector, sanitation and transportation infrastructure, disaster preparedness, and micro-loans for small businesses in Gaza and the West Bank (biblical Judea and Samaria). It is set to be dispersed as early as next week.