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The Palestinians: Overview, Aid, and U.S. Policy Issues

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Updated September 18, 2018April 25, 2019 The Palestinians: Overview and Key Issues for U.S. Policy The Palestinians are an Arab people whose origins are in present-day Israel, the West Bank, and the Gaza Strip (Gaza). Their conflict with Israel has garnered significant U.S. policy attention since the Cold War, with some major developments occurring during the Trump Administration (see “Key U.S. Policy Issues” below). Israel’s military gained control over the West Bank and Gaza in the 1967 Arab-Israeli War, but in 1994 Israel agreed to permit a Palestinian Authority (PA) with various governmental functions to have some limited authority—via arrangements with the Palestine Liberation Organization (PLO)—over Gaza and specified areas of the West Bank. Fatah, a traditionally secular Arab nationalist faction, is the predominant force within the PA and PLO. In 2007, two years after a unilateral Israeli withdrawal from Gaza, the Sunni Islamist group Hamas (a U.S.-designated terrorist organization) forcibly seized control of Gaza and has exercised de facto authority there ever since—leaving the Palestinians subject to divided rule. Israel retains overall control of the West Bank and patrols Gaza’s frontiers (other than those with Egypt), airspace, and maritime access. The PA held occasional elections for president and a legislative council until a Hamas victory in 2006 legislative elections. Since then, it has ruled by presidential decree. Given the West Bank-Gaza split, it is unclear if and when presidential and legislative elections will be held again. elsewhere. Of the total Palestinian population, around 5.4 million (roughly 44%) are refugees (livingand their ongoing disputes and interactions with Israel raise significant issues for U.S. policy. U.S.Palestinian tensions have risen in connection with Trump Administration actions on Israeli-Palestinian matters such as Jerusalem and aid (see “Key U.S. Policy Issues” below). The Palestinians are an Arab people whose origins are in present-day Israel, the West Bank, and the Gaza Strip (Gaza). Fatah, a traditionally secular Arab nationalist faction, is the predominant faction within the Palestine Liberation Organization (PLO), which represents Palestinians internationally. The Sunni Islamist group Hamas (a U.S.-designated terrorist organization) has not accepted PLO recognition of Israel and constitutes the main opposition to Fatah. Of the approximately 12.4 million Palestinians worldwide, about 4.8 million (98% Sunni Muslim, 1% Christian) live in the West Bank and Gaza. About 1.5 million additional Palestinians are citizens of Israel, and 6.1 million more live elsewhere. Of the total Palestinian population, around 5.4 million (roughly 44%) are refugees (registered in the West Bank, Gaza, Jordan, Lebanon, and Syria) whose claims to land in present-day Israel constitute a major issue of IsraeliPalestinian dispute. The U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) provides assistance (such as health care, education, and housing) to Palestinian refugees. Since the dissolution of the Ottoman Empire at the end of World War I, major world powers and international organizations have unsuccessfully sought a sustained political resolution to disputes between Jews and Arabs in historic Palestine regarding territorial control, governance, and security. Numerous formal or informal armed conflicts have ensued between Israelis and Arabs (including Palestinians), and the nature of the political problem has evolved over time. Since the 1990s, a number of U.S.-brokered IsraeliPalestinian efforts to reach a final-status agreement have made little or no progress in that direction. Unilateral actions by both Israelis and Palestinians—including Israeli settlement expansion in the West Bank and security measures, and PLO/PA initiatives in international organizations—became more controversial after a breakdown in the Oslo peace process and the beginning of the second Palestinian intifada (uprising) in 2000-2001. In the past two decades, other regional political and security issues have taken some of the global attention from Palestinian issues. Fatah, Palestinian Authority, and West Bank Fatah leaders Yasser Arafat (1994-died 2004) and Mahmoud Abbas have headed the PA since its creation. Both Abbas’s age (b. 1935) and reports in 2018 of deteriorating health have contributed to widespread speculation about who might lead the PA and PLO upon the end of his tenure. Possible successors to Abbas include:  Marwan Barghouti often leads in opinion polls, but is imprisoned by Israel for terrorist-related offenses allegedly committed during the second intifada.  Muhammad Dahlan was a top security figure in Gaza who enjoys support from some Arab states, but he was expelled from Fatah in 2011 and is currently based in the United Arab Emirates.  Majid Faraj (arguably the security figure most trusted Source: Economist Intelligence Unit Note: West Bank and Gaza Strip borders remain subject to IsraeliPalestinian negotiation. Of the approximately 12.4 million Palestinians worldwide, about 4.8 million (98% Sunni Muslim, 1% Christian) live in the West Bank and Gaza. About 1.5 million additional Palestinians are citizens of Israel, and 6.1 million more live by Abbas), Saeb Erekat (a top PLO negotiator), and Salam Fayyad (a previous PA prime minister) are prominent and well-connected, but have questionable political clout with domestic constituencies. Mahmoud al Aloul and Jibril Rajoub have political heft within Fatah, but relatively less international experience. https://crsreports.congress.gov The Palestinians: Overview and Key Issues for U.S. Policy Since the West Bank-Gaza split, the United States and other Western countries generally have sought to bolster the Abbas-led PA vis-à-vis Hamas, including through the provision of economic and nonlethal security assistance. The security assistance reinforces ongoing Israel-PA security coordination, but with polls suggesting widespread Palestinian opposition to the coordination, questions persist about its duration without significant diplomatic progress. Observers debate whether international aid can help West Bankers become more self-sufficient if Israel does not significantly loosen constraints on the movement of people and goods Source: Economist Intelligence Unit. Note: West Bank and Gaza Strip borders remain subject to IsraeliPalestinian negotiation. International attention to the Palestinians’ situation increased after Israel’s military gained control over the West Bank and Gaza in the 1967 Arab-Israeli War. Direct U.S. engagement with Palestinians in the West Bank and Gaza dates from the establishment of the Palestinian Authority (PA) in 1994. In the past decade, other regional political and security issues have taken some of the global attention from Palestinian issues. Timeline of Key Events Since 1993 1993-1995 Israel and the PLO mutually recognize one another and establish the PA, which has limited self-rule (subject to overall Israeli control) in the Gaza Strip and specified areas of the West Bank. 2000-2005 The Clinton Administration is unable to broker an Israel-PLO peace agreement; second Palestinian intifada affects prospects for Israeli-Palestinian peace, leads to tightened Israeli security in the West Bank, and complicates the U.S. third-party role. 2004-2005 PLO Chairman/PA President Yasser Arafat dies; Mahmoud Abbas succeeds him. 2005 Israel unilaterally disengages from Gaza, but remains in control of airspace and land/maritime access points; Israeli settlements continue to expand in the West Bank (including East Jerusalem). 2006 Hamas wins majority in Palestinian Legislative Council and leads new PA cabinet; Israel, United States, and European Union confine relations to PA President Abbas. 2007 West Bank-Gaza split: Hamas seizes control of Gaza Strip; Abbas reorganizes PA cabinet to lead West Bank; this remains the status quo to date. 2007-present Various rounds of U.S.-brokered IsraeliPalestinian peace negotiations (the last in 2013-2014) end unsuccessfully; PLO/PA increases efforts to gain membership in or support from international organizations. 2017-present Trump Administration recognizes Jerusalem as Israel’s capital, and U.S.-Palestinian tensions increase. PLO/PA, West Bank, and Possible Succession The PA held occasional elections for president and a legislative council until the Hamas victory in the 2006 legislative elections. Since then, it has ruled by presidential decree. Given the West Bank-Gaza split in 2007, it is unclear if and when presidential and legislative elections will take place again. The United States and some other countries sought to bolster the Abbas-led PA in the West Bank vis-à-vis Hamas, including through the provision of economic and nonlethal security assistance. However, U.S. aid shrank considerably in 2018 and ended completely in early 2019. https://crsreports.congress.gov The Palestinians: Overview and Key Issues for U.S. Policy Assistance for Palestinians continues from various sources such as the European Union and Arab Gulf states. The PA faces acute financial concerns because, as of February 2019, it has rejected monthly revenue transfers from Israel representing approximately 65% of the PA budget, in protest of some amounts withheld by Israel (for more detail, see CRS Report R44245, Israel: Background and U.S. Relations in Brief, by Jim Zanotti). The PA has asked the Arab League to follow through on a 2010 decision to provide it with budgetary assistance. Mahmoud Abbas’s age (b. 1935) and reports of deteriorating health have contributed to speculation about who might lead the PA and PLO upon the end of his tenure. There are a number of possible successors. Majid Faraj (arguably the adviser most trusted by Abbas), Saeb Erekat (a top PLO negotiator), and Salam Fayyad (a previous PA prime minister) are well-known in international circles, but less so among domestic constituencies. Mohammed Shtayyeh (PA prime minister since March 2019 and a close Abbas confidant) is an internationally visible Fatah insider. Other Fatah figures include Mahmoud al Aloul and Jibril Rajoub. Marwan Barghouti attracts significant popular support, but has been imprisoned by Israel since 2002. Muhammad Dahlan enjoys support from some Arab states, but was expelled from Fatah in 2011. Hamas and Gaza Hamas controls Gaza through its security forces and obtains resources from smuggling, informal “taxes,” and reported external assistance from some Arab sources and Iran. Hamas also maintains a presence in the West Bank and a political bureau that conducts the movement’s worldwide dealings. Gaza-based Ismail Haniyeh is the leader of Hamas’s political bureau. There is some speculation that Hamas’s military wing (the Izz ad Din al Qassam Brigades) seeks to drive political decisions via its control over security. Yahya Sinwar, a Qassam Brigades leader, is also Hamas’s designated leader for Gaza. Hamas apparently seeks to supplant Fatah as the leading faction in the Palestinian national movement. It appeals to some Palestinians with its militant stance, which formally rejects Israel’s existence. Yahya Sinwar, Hamas’s designated leader for Gaza, came from Hamas’s military wing (the Izz ad Din al Qassam Brigades). Hamas and other Gaza-based militants have engaged in three significant conflicts with Israel (2008-2009, 2012, 2014). In each conflict, the militants launched rockets indiscriminately toward Israeli targetsIsrael, and Israeli military responses strikes largely decimated Gaza’s infrastructure. The actions on both sides fueled debate over various legal and ethical issues. They also both sides exacerbated a conundrum for third-party countries and international organizations, which encounter difficulty in rebuilding that seek to rebuild Gaza’s infrastructure without bolstering Hamas. A sharp decrease in PA and external funding to Gaza since 2017 has worsened already difficult humanitarian conditions there. This has led some international observers and Israeli officials to warn of an impendinga growing crisis, and some Members of Congress to call in 2018 for urgent U.S. assistance to alleviate suffering. According to the World to call for a resumption of U.S. assistance to help alleviate suffering. Israeli-approved cash transfers from Qatar since late 2018 have provided some relief for Gazans. According to the World Bank, Gazans’ real per capita incomes have fallen by onethirdone-third since 1994, owing largely to the West Bank-Gaza split and to Israel’s and Egypt’s tight controls on goods and people transiting Gaza’s borders. Violence periodically flares between Gazans and Israel’s military. In 2018, Hamas has reportedly encouraged actions from Gaza that are challenging for Israel to target militarily. These include protests that sometimes feature rudimentary weapons, and flaming kite or balloon launches that damage Israeli land but pose relatively little danger to people. At the flares regularly between Gazans and Israel’s military, periodically escalating toward larger conflict. At the same time, Hamas is reportedly keeping options open for a long-term cease-fire with Israel. Fatah and Hamas have reached a number of Egypt-brokered agreements aimed at ending the West Bank-Gaza split. However, key provisions remain unimplemented, with Hamas still effectively in control despite PA responsibility for some civil services and border crossings. Key U.S. Policy Issues During the first year of the Trump Administration, the Palestinians welcomed diplomatic efforts on the IsraeliPalestinian peace process. However, the PLO/PA stance changed in December 2017 after. A new Fatah-dominated PA government established by Abbas in March 2019 may deepen rather than ease Fatah-Hamas tensions. Key U.S. Policy Issues The Trump Administration has clashed politically with Mahmoud Abbas and the PLO/PA. After President Trump recognized Jerusalem as Israel’s capital in December 2017 and announced his intention to relocate the U.S. embassy there from Tel Aviv. Alleging U.S. bias toward Israel, Palestinian leaders broke there, Abbas broke off high-level political contacts with the United States and sought support from other international actors. The Palestinian response to the U.S. policy on Jerusalem appears to have influenced Administration decisions to reprogram U.S. aid initially allocated to the Palestinians, end turned to other international actors. Since then, the Trump Administration significantly reduced bilateral aid to the West Bank and Gaza, discontinued contributions to UNRWA for Palestinian refugees, and close closed the PLO’s representative office in Washington, DC. According to a September 2018 State Department statement, the PLO office closure “is also consistent with Administration and Congressional concerns with Palestinian attempts to prompt an investigation of Israel by the International Criminal Court.” The Administration reportedly still intends to introduce a peace process proposal. However, prospects for renewed negotiations appear dim, with Palestinian leaders insisting that the Trump Administration has aligned itself with Israel to predetermine key diplomatic outcomes regarding Jerusalem and refugees. Top U.S. officials, meanwhile, assert that they are discarding failed diplomatic frameworks of the past and helping the Palestinians come to terms with the realities they will face in a future negotiation. The Administration has made the following specific funding decisions in the second half of 2018. In August, it announced that $200 million in FY2017 economic aid originally appropriated for the Palestinians would be reprogrammed elsewhere as a matter of national interest. In September, the Administration disclosed that an additional $25 million for East Jerusalem hospitals would be reprogrammed, and that Palestinians would not participate in an Arab-Jewish conflict management and mitigation initiative ($10 million allocated for FY2017) that had included them since 2004. Also in September, the Administration announced that it would end all U.S. contributions to UNRWA, leading UNRWA officials to appeal to other Western and Arab countries for funding to cover a 2018 budget shortfall of approximately $200 million. Observers, including some within Israeli official circles, debate the merits of funding reductions or cutoffs, referencing anticipated effects on regional stability, humanitarian concerns (especially in Gaza), and political leverage. For more information and background, see CRS Insight IN10964, Decision to Stop U.S. Funding of UNRWA (for Palestinian Refugees), by Jim Zanotti and Rhoda Margesson; and CRS Report RS22967, U.S. Foreign Aid to the Palestinians, by Jim Zanotti. Congress’s enactment of the Taylor Force Act (Title X of P.L. 115-141) in March 2018 withheld most economic aid that “directly benefits” the PA unless the PA terminates payments “for acts of terrorism,” among other things Washington, DC, and subsumed the U.S. consulate general in Jerusalem within the U.S. embassy to Israel. Figure 1.U.S. Bilateral Assistance to the Palestinians Sources: U.S. State Department and USAID, adapted by CRS. Notes: All amounts are approximate. Amounts stated for FY2019 and FY2020 have been requested, with ultimate appropriation and allocation amounts to be determined. NADR = Nonproliferation, Antiterrorism, Demining, and Related Programs, INCLE = International Narcotics Control and Law Enforcement, ESF = Economic Support Fund, OCO = Overseas Contingency Operations. The Trump Administration claims that it will introduce a peace plan, but has delayed publicizing it numerous times. Partly due to the Administration’s lack of stated opposition to statements by Israeli Prime Minister Binyamin Netanyahu regarding Israel’s possible unilateral annexation of West Bank settlements, Palestinian leaders and some other observers claim that the Administration has aligned itself with Israel to predetermine key diplomatic outcomes. Congress enacted the Anti-Terrorism Clarification Act in 2018 (ATCA; P.L. 115-253). Under the ATCA, as of February 2019 the PA refused to accept any U.S. bilateral aid in the West Bank and Gaza—including nonlethal security assistance that Israel supports—because doing so might subject the PLO/PA to legal liability in U.S. courts. Apparently, U.S. aid to the Palestinians will not resume unless Congress amends or repeals the ATCA, or the Administration channels the aid differently. Jim Zanotti, Specialist in Middle Eastern Affairs https://crsreports.congress.gov IF10644 The Palestinians: Overview and Key Issues for U.S. Policy Disclaimer This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material. https://crsreports.congress.gov | IF10644 · VERSION 1112 · UPDATED