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Updated September 18, 2018
The Palestinians: Overview and Key Issues for U.S. Policy
The Palestinians are an Arab people whose origins are in
elsewhere. Of the total Palestinian population, around 5.4
present-day Israel, the West Bank, and the Gaza Strip
million (roughly 44%) are refugees (living in the West
(Gaza). Their conflict with Israel has garnered significant
Bank, Gaza, Jordan, Lebanon, and Syria) whose claims to
U.S. policy attention since the Cold War, with some major
land in present-day Israel constitute a major issue of Israeli-
developments occurring during the Trump Administration
Palestinian dispute. The U.N. Relief and Works Agency for
(see “Key U.S. Policy Issues” below). Israel’s military
Palestine Refugees in the Near East (UNRWA) provides
gained control over the West Bank and Gaza in the 1967
assistance (such as health care, education, and housing) to
Arab-Israeli War, but in 1994 Israel agreed to permit a
Palestinian refugees.
Palestinian Authority (PA) with various governmental
Since the dissolution of the Ottoman Empire at the end of
functions to have some limited authority—via arrangements
World War I, major world powers and international
with the Palestine Liberation Organization (PLO)—over
organizations have unsuccessfully sought a sustained
Gaza and specified areas of the West Bank. Fatah, a
political resolution to disputes between Jews and Arabs in
traditionally secular Arab nationalist faction, is the
historic Palestine regarding territorial control, governance,
predominant force within the PA and PLO. In 2007, two
and security. Numerous formal or informal armed conflicts
years after a unilateral Israeli withdrawal from Gaza, the
have ensued between Israelis and Arabs (including
Sunni Islamist group Hamas (a U.S.-designated terrorist
Palestinians), and the nature of the political problem has
organization) forcibly seized control of Gaza and has
evolved over time.
exercised de facto authority there ever since—leaving the
Palestinians subject to divided rule. Israel retains overall
Since the 1990s, a number of U.S.-brokered Israeli-
control of the West Bank and patrols Gaza’s frontiers (other
Palestinian efforts to reach a final-status agreement have
than those with Egypt), airspace, and maritime access.
made little or no progress in that direction. Unilateral
actions by both Israelis and Palestinians—including Israeli
The PA held occasional elections for president and a
settlement expansion in the West Bank and security
legislative council until a Hamas victory in 2006 legislative
measures, and PLO/PA initiatives in international
elections. Since then, it has ruled by presidential decree.
organizations—became more controversial after a
Given the West Bank-Gaza split, it is unclear if and when
breakdown in the Oslo peace process and the beginning of
presidential and legislative elections will be held again.
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.
Source: Economist Intelligence Unit
Majid Faraj (arguably the security figure most trusted
Note: West Bank and Gaza Strip borders remain subject to Israeli-
by Abbas), Saeb Erekat (a top PLO negotiator), and
Palestinian negotiation.
Salam Fayyad (a previous PA prime minister) are
prominent and well-connected, but have questionable
Of the approximately 12.4 million Palestinians worldwide,
political clout with domestic constituencies. Mahmoud
about 4.8 million (98% Sunni Muslim, 1% Christian) live in
al Aloul and Jibril Rajoub have political heft within
the West Bank and Gaza. About 1.5 million additional
Fatah, but relatively less international experience.
Palestinians are citizens of Israel, and 6.1 million more live
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
Key U.S. Policy Issues
Western countries generally have sought to bolster the
During the first year of the Trump Administration, the
Abbas-led PA vis-à-vis Hamas, including through the
Palestinians welcomed diplomatic efforts on the Israeli-
provision of economic and nonlethal security assistance.
Palestinian peace process. However, the PLO/PA stance
The security assistance reinforces ongoing Israel-PA
changed in December 2017 after President Trump
security coordination, but with polls suggesting widespread
recognized Jerusalem as Israel’s capital and announced his
Palestinian opposition to the coordination, questions persist
intention to relocate the U.S. embassy there from Tel Aviv.
about its duration without significant diplomatic progress.
Alleging U.S. bias toward Israel, Palestinian leaders broke
Observers debate whether international aid can help West
off high-level political contacts with the United States and
Bankers become more self-sufficient if Israel does not
sought support from other international actors.
significantly loosen constraints on the movement of people
The Palestinian response to the U.S. policy on Jerusalem
and goods.
appears to have influenced Administration decisions to
Hamas and Gaza
reprogram U.S. aid initially allocated to the Palestinians,
Hamas controls Gaza through its security forces and obtains
end contributions to UNRWA for Palestinian refugees,
resources from smuggling, informal “taxes,” and reported
and close the PLO’s representative office in Washington,
external assistance from some Arab sources and Iran.
DC. According to a September 2018 State Department
Hamas also maintains a presence in the West Bank and a
statement, the PLO office closure “is also consistent with
political bureau that conducts the movement’s worldwide
Administration and Congressional concerns with
dealings. Gaza-based Ismail Haniyeh is the leader of
Palestinian attempts to prompt an investigation of Israel by
Hamas’s political bureau
the International Criminal Court.”
. There is some speculation that
The Administration
Hamas’s military wing (the Izz ad Din al Qassam Brigades)
reportedly still intends to introduce a peace process
seeks to drive political decisions via its control over
proposal. However, prospects for renewed negotiations
security. Yahya Sinwar, a Qassam Brigades leader, is also
appear dim, with Palestinian leaders insisting that the
Hamas’s designated leader for Gaza.
Trump Administration has aligned itself with Israel to
predetermine key diplomatic outcomes regarding Jerusalem
Hamas apparently seeks to supplant Fatah as the leading
and refugees. Top U.S. officials, meanwhile, assert that
faction in the Palestinian national movement. It appeals to
they are discarding failed diplomatic frameworks of the past
some Palestinians with its militant stance, which formally
and helping the Palestinians come to terms with the realities
rejects Israel’s existence. Hamas and other Gaza-based
they will face in a future negotiation.
militants have engaged in three significant conflicts with
Israel (2008-2009, 2012, 2014). In each conflict, the
The Administration has made the following specific
militants launched rockets indiscriminately toward Israeli
funding decisions in the second half of 2018. In August, it
targets, and Israeli military responses largely decimated
announced that $200 million in FY2017 economic aid
Gaza’s infrastructure. The actions on both sides fueled
originally appropriated for the Palestinians would be
debate over various legal and ethical issues. They also
reprogrammed elsewhere as a matter of national interest. In
exacerbated a conundrum for third-party countries and
September, the Administration disclosed that an additional
international organizations, which encounter difficulty in
$25 million for East Jerusalem hospitals would be
rebuilding Gaza’s infrastructure without bolstering Hamas.
reprogrammed, and that Palestinians would not participate
A sharp decrease in PA and external funding to Gaza since
in an Arab-Jewish conflict management and mitigation
2017 has worsened already difficult humanitarian
initiative ($10 million allocated for FY2017) that had
conditions there. This has led some international observers
included them since 2004. Also in September, the
and Israeli officials to warn of an impending crisis, and
Administration announced that it would end all U.S.
some Members of Congress to call in 2018 for urgent U.S.
contributions to UNRWA, leading UNRWA officials to
assistance to alleviate suffering. According to the World
appeal to other Western and Arab countries for funding to
Bank, Gazans’ real per capita incomes have fallen by one-
cover a 2018 budget shortfall of approximately $200
third since 1994, owing largely to the West Bank-Gaza split
million. Observers, including some within Israeli official
and to Israel’s and Egypt’s tight controls on goods and
circles, debate the merits of funding reductions or cutoffs,
people transiting Gaza’s borders.
referencing anticipated effects on regional stability,
humanitarian concerns (especially in Gaza), and political
Violence periodically flares between Gazans and Israel’s
leverage. For more information and background, see CRS
military. In 2018, Hamas has reportedly encouraged actions
Insight IN10964, Decision to Stop U.S. Funding of UNRWA
from Gaza that are challenging for Israel to target militarily.
(for Palestinian Refugees), by Jim Zanotti and Rhoda
These include protests that sometimes feature rudimentary
Margesson; and CRS Report RS22967, U.S. Foreign Aid to
weapons, and flaming kite or balloon launches that damage
the Palestinians, by Jim Zanotti.
Israeli land but pose relatively little danger to people. At the
same time, Hamas is reportedly keeping options open for a
Congress’s enactment of the Taylor Force Act (Title X of
long-term cease-fire with Israel.
P.L. 115-141) in March 2018 withheld most economic aid
Fatah and Hamas have reached a number of Egypt-brokered
that “directly benefits” the PA unless the PA terminates
agreements aimed at ending the West Bank-Gaza split.
payments “for acts of terrorism,” among other things.
However, key provisions remain unimplemented, with
Hamas still effectively in control despite PA responsibility
Jim Zanotti, Specialist in Middle Eastern Affairs
for some civil services and border crossings.
IF10644
https://crsreports.congress.gov
The Palestinians: Overview and Key Issues for U.S. Policy
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