Assistance/State Department summary – USDOS press release/Non-UN document

State Department summarizes assistance to Palestinian Authority

Regular and supplemental aid total more than $120 million in 2003 

In response to a press query, the State Department provided a breakdown of regular and supplemental assistance to the Palestinian Authority from October 2002 to the present.

In addition, the U.S. gave $129 million in 2003 to the U.N. Relief and Works Agency for Palestine Refugees in the Near East.

Following is the State Department's response to a press query about U.S. assistance to the Palestinian Authority:

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Department of State
Taken Questions
Office of the Spokesman
Washington, DC
November 10, 2003

Taken Question from Daily Briefing of Nov. 10, 2003

Aid and Assistance Funds to the Palestinian Authority (Taken Question) 

QUESTION: Explain current amount and status of aid and assistance funds to the Palestinian Authority.

Answer: In Fiscal Year 2003 [Oct. 2002-Oct. 2003], the U.S. Agency for International Development's (USAID) 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 [beginning October 2003].

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 U.N. 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 percent of the Relief and Works Agency's total annual funding.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)