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Updated September 9, 2021
The Palestinians: Overview, Aid, and U.S. Policy Issues
The Palestinians and their ongoing disputes and interactions
million (roughly 44%) are refugees (registered in the West
with Israel raise significant issues for U.S. policy (see “U.S.
Bank, Gaza, Jordan, Lebanon, and Syria) whose claims to
Policy Issues and Aid” below). After a serious rupture in
land in present-day Israel constitute a major issue of Israeli-
U.S.-Palestinian relations during the Trump Administration,
Palestinian dispute. The U.N. Relief and Works Agency for
the Biden Administration has started reengaging with the
Palestine Refugees in the Near East (UNRWA) is mandated
Palestinian people and their leaders, and resuming some
by the U.N. General Assembly to provide protection and
economic development and humanitarian aid—with hopes
essential services to these registered Palestinian refugees,
of preserving the viability of a negotiated two-state
including health care, education, and housing assistance.
solution. In the aftermath of the May 2021 conflict
International attention to the Palestinians’ situation
involving Israel and Gaza, U.S. officials have announced
increased after Israel’s military gained control over the
additional aid (also see below) and other efforts to help with
West Bank and Gaza in the 1967 Arab-Israeli War. Direct
recovery and engage with the West Bank-based Palestinian
U.S. engagement with Palestinians in the West Bank and
Authority (PA), but near-term prospects for diplomatic
Gaza dates from the establishment of the PA in 1994. For
progress toward Israeli-Palestinian peace reportedly remain
the past several years, other regional political and security
dim. Palestinian leaders lamented some Arab states’
issues have taken some of the global attention from
normalization of relations with Israel near the end of the
Palestinian issues.
Trump Administration because it could undermine past
Arab efforts to link such improvements with addressing
Timeline of Key Events Since 1993
Palestinian negotiating demands.
1993-1995
Israel and the PLO mutually recognize each
The Palestinians are an Arab people whose origins are in
other and establish the PA, which has limited
present-day Israel, the West Bank, and Gaza. Fatah, an
self-rule (subject to overall Israeli control) in
Arab nationalist faction, is the driving force within the
the Gaza Strip and specified areas of the
Palestine Liberation Organization (PLO), which represents
West Bank.
Palestinians internationally. The Sunni Islamist group
2000-2005
Second Palestinian intifada affects prospects
Hamas (a U.S.-designated terrorist organization) has not
for Israeli-Palestinian peace, leads to
accepted PLO recognition of Israel and constitutes the main
tightened Israeli security in the West Bank,
opposition to Fatah.
and complicates the U.S. third-party role.
2004-2005
PLO Chairman/PA President Yasser Arafat
dies; Mahmoud Abbas succeeds him.
2005
Israel unilateral y disengages from Gaza, but
remains in control of airspace and
land/maritime access points.
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 Israeli-
Palestinian peace negotiations (the last in
2013-2014) end unsuccessful y; PLO/PA
increases efforts to gain membership in or
Source: Economist Intel igence Unit.
support from international organizations.
Note: West Bank and Gaza Strip borders remain subject to Israeli-
Palestinian negotiation.
2017-2020
U.S.-Palestinian tensions rise during the
Trump Administration.
Of the approximately 12.4 million Palestinians worldwide,
about 4.8 million (98% Sunni Muslim, 1% Christian) live in
2021
Biden Administration resumes aid and takes
the West Bank and Gaza. About 1.5 million additional
additional steps to reengage Palestinians; May
Palestinians are citizens of Israel, and 6.1 million more live
2021 Israel-Gaza conflict and aftermath.
elsewhere. Of the total Palestinian population, more than 5
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The Palestinians: Overview, Aid, and U.S. Policy Issues
PLO/PA: Governance, Security, and Succession
that echoed past conflicts from 2008-2009, 2012, and 2014,
The PA held occasional elections for president and a
the militants launched rockets indiscriminately toward
legislative council until the Hamas victory in the 2006
Israel, and Israeli military strikes largely decimated Gaza’s
legislative elections. Since then, it has ruled by presidential
infrastructure. The actions on both sides worsened a
decree, and has drawn some international criticism for
conundrum for international actors seeking to rebuild
alleged violations of the rule of law and civil liberties. This
Gaza’s infrastructure without bolstering Hamas.
criticism has increased since a PA crackdown on protest
Difficult living conditions for Palestinians in Gaza persist
that included the brutal detention and death in July 2021 of
and are exacerbated by uncertainties regarding external
prominent activist Nizar Banat. While women hold some
funding. Israeli-approved cash transfers from Qatar since
prominent positions, including within the PA cabinet, men
late 2018 have provided some relief for Gazans. To the
still largely outnumber them in traditional leadership roles.
extent that outside contributions replace funding from the
Given the West Bank-Gaza split in 2007, it is unclear if
West Bank-based PA—whose actions suggest some
elections will take place again. After announcing elections
ambivalence over taking responsibility for Gaza—they
for mid-2021, Abbas postponed them in April, generating
could undermine prospects for West Bank-Gaza unity.
significant domestic criticism.
U.S. Policy Issues and Aid
After 2007, the United States and some other countries
The extent to which the Biden Administration might
sought to bolster the Abbas-led PA in the West Bank vis-à-
improve U.S.-Palestinian relations remains unclear.
vis Hamas, including through economic and nonlethal
Relations significantly worsened in light of various
security assistance. Following the U.S. suspension of aid in
developments during the Trump Administration, including
2019, the European Union and Arab Gulf states continued
the U.S. recognition of Jerusalem as Israel’s capital and the
to provide external assistance for Palestinians, though some
suspension of U.S. aid. The Biden Administration
Gulf states reduced funding. Amid measures to control the
announced its intention in May 2021 to reopen the U.S.
Coronavirus Disease 2019 pandemic, the West Bank and
consulate general in Jerusalem that the Trump
Gaza economy contracted by 11.5% in 2020 and the
Administration subsumed into the U.S. embassy to Israel in
Economist Intelligence Unit forecasts relatively slow
2019, but has not specified the timing. The Biden
growth for 2021 (1.0%) and 2022 (2.5%).
Administration also has stated opposition to certain
Mahmoud Abbas’s age (b. 1935) and reports of health
unilateral Israeli or Palestinian actions, including
problems have contributed to speculation about who might
annexation, settlement activity, house demolitions and
lead the PLO and PA upon the end of his tenure. Top
evictions, and incitement to violence.
security adviser Majid Faraj (arguably the figure most
While the Biden Administration has announced the
trusted by Abbas) has a major profile internationally, but
resumption of some types of bilateral aid (see Figure 1) and
limited domestic popular support. Mohammed Shtayyeh
voluntary contributions to UNRWA ($318.8 million to date
(PA prime minister since March 2019) is an internationally
during FY2021), some complications remain. The Taylor
visible Fatah insider. Other key Fatah figures include
Force Act (Div. S, Title X of P.L. 115-141) prohibits most
Mahmoud al Aloul and Jibril Rajoub. Marwan Barghouti
Economic Support Fund (ESF) aid directly benefitting the
attracts significant popular support, but has been
PA unless the PLO/PA curtails domestically popular
imprisoned by Israel since 2002. Nasser al Qudwa is
payments that arguably incentivize acts of terror. The Nita
another prominent figure who formed a list with Barghouti
M. Lowey Middle East Partnership for Peace Act of 2020
to rival Fatah for the postponed 2021 elections. Mohammed
(Div. K, Title VIII of P.L. 116-260) has authorized future
Dahlan enjoys support from some Arab states, but was
Israeli-Palestinian people-to-people and economic
expelled from Fatah in 2011.
cooperation initiatives.
Hamas and Gaza
Figure 1. U.S. Bilateral Aid to the Palestinians
Hamas controls Gaza through its security forces and obtains
resources from smuggling, informal “taxes,” and reported
external assistance from some Arab sources and Iran.
Yahya Sinwar, Hamas’s leader for Gaza, came from
Hamas’s military wing. Hamas also maintains a presence in
the West Bank. Qatar-based Ismail Haniyeh is the leader of
the political bureau that conducts Hamas’s worldwide
dealings. Fatah and Hamas have reached a number of
Egypt-brokered agreements aimed at ending the West
Bank-Gaza split. However, problems with implementation
have left Hamas in control of Gaza despite PA
Source: U.S. Department of State.
responsibility for some civil services. For security reasons,
Notes: NADR=Nonproliferation, Antiterrorism, Demining and
Israel and Egypt maintain tight controls on goods and
Related Programs, INCLE=International Narcotics Control and Law
people transiting Gaza’s borders.
Enforcement, ESF=Economic Support Fund, OCO=Overseas
In May 2021, Hamas and other Gaza-based militants
Contingency Operations.
became involved with Israel in a significant 11-day conflict
that also included some Arab-Jewish unrest and violence in
Jim Zanotti, Specialist in Middle Eastern Affairs
Israeli cities, Jerusalem, and the West Bank. In a pattern
IF10644
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The Palestinians: Overview, Aid, and U.S. Policy Issues
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