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Updated July 18, 2022
The Palestinians: Overview, Aid, and U.S. Policy Issues
The Palestinians are an Arab people whose origins are in
elsewhere. Of the total Palestinian population, more than 5
present-day Israel, the West Bank, and Gaza. Their ongoing
million (roughly 44%) are refugees (registered in the West
disputes and interactions with Israel raise significant issues
Bank, Gaza, Jordan, Lebanon, and Syria) whose claims to
for U.S. policy (see “U.S. Policy Issues and Aid” below).
land in present-day Israel constitute a major issue of Israeli-
After a serious rupture in U.S.-Palestinian relations during
Palestinian dispute. The U.N. Relief and Works Agency for
the Trump Administration, the Biden Administration has
Palestine Refugees in the Near East (UNRWA) is mandated
reengaged with the Palestinian people and their leaders in
by the U.N. General Assembly to provide protection and
the West Bank-based Palestinian Authority (PA), and
essential services to these registered Palestinian refugees,
resumed some aid—with hopes of preserving the viability
including health care, education, and housing assistance.
of a negotiated two-state solution. The Palestinians aspire to
International attention to the Palestinians’ situation
an independent state with East Jerusalem as its capital.
increased after Israel’s military gained control over the
However, near-term prospects for diplomatic progress
West Bank and Gaza in the 1967 Arab-Israeli war. Direct
toward Israeli-Palestinian peace reportedly remain dim.
U.S. engagement with Palestinians in the West Bank and
Palestinian leaders lamented some Arab states’
Gaza dates from the establishment of the PA in 1994. For
normalization of relations with Israel near the end of the
the past several years, other regional political and security
Trump Administration because it could undermine past
issues have taken some of the global attention from
Arab efforts to link such improvements with addressing
Palestinian issues.
Palestinian negotiating demands.
Reduced international focus on the Palestinians may affect
Palestinian domestic politics are dominated by two factions.
their economic conditions. According to the World Bank,
Fatah, an Arab nationalist faction, is the driving force
external aid to the PA has declined from 27% of gross
within the Palestine Liberation Organization (PLO), which
domestic product (GDP) in 2008 to just under 2% in 2021,
represents Palestinians internationally. The Sunni Islamist
contributing to large fiscal deficits that endanger the
group Hamas (a U.S.-designated terrorist organization) has
economy’s sustainability. The International Monetary Fund
not accepted PLO recognition of Israel and constitutes the
estimated end-2021 unemployment as 45% in Gaza and
main opposition to Fatah. Since 2007, the United States and
13% in the West Bank, and has forecast GDP returning to
other Western countries have generally sought to bolster the
pre-COVID-19-pandemic levels only near the end of 2023.
Fatah-led PA vis-à-vis Hamas.
Price hikes connected to the Russia-Ukraine war, including
on grain, affect Palestinians alongside others in the region.
Timeline of Key Events Since 1993
1993-1995
Israel and the PLO mutually recognize each
other 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
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 unilateral y disengages from Gaza, but
remains in control of airspace and
land/maritime access points.
2006
Hamas wins majority in Palestinian Legislative
Source: Economist Intel igence Unit.
Council and leads new PA cabinet; Israel,
Note: West Bank and Gaza Strip borders remain subject to Israeli-
United States, and European Union confine
Palestinian negotiation.
relations to PA President Abbas.
Of the approximately 12.4 million Palestinians worldwide,
2007
West Bank-Gaza split: Hamas seizes control
about 4.8 million (98% Sunni Muslim, 1% Christian) live in
of Gaza Strip; Abbas reorganizes PA cabinet
the West Bank and Gaza. About 1.5 million additional
to lead West Bank; this remains the status
Palestinians are citizens of Israel, and 6.1 million more live
quo to date.
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The Palestinians: Overview, Aid, and U.S. Policy Issues
2007-present
Various rounds of U.S.-brokered Israeli-
Difficult living conditions for Palestinians in Gaza persist
Palestinian peace negotiations (the last in
and are exacerbated by uncertainties regarding external
2013-2014) end unsuccessful y; PLO/PA
funding. Israeli-approved funding transfers from Qatar
increases efforts to gain membership in or
since 2018 have provided some relief for Gazans. To the
support from international organizations.
extent that outside contributions replace funding from the
West Bank-based PA—whose actions suggest ambivalence
2017-2020
U.S.-Palestinian tensions rise during the
over taking responsibility for Gaza—they could undermine
Trump Administration.
prospects for West Bank-Gaza unity.
2021
Biden Administration resumes aid and
U.S. Policy Issues and Aid
reengages diplomatically with Palestinians.
The extent to which the Biden Administration might
improve U.S.-Palestinian relations remains unclear.
PLO/PA: Governance, Security, and Succession
Relations significantly worsened in light of various
The PA held occasional elections for president and a
developments during the Trump Administration, including
legislative council until the Hamas victory in the 2006
the U.S. recognition of Jerusalem as Israel’s capital
legislative elections. Since then, it has ruled by presidential
(without specifying the boundaries of Israeli sovereignty
decree, and has drawn some international criticism for
within the city) and the suspension of U.S. aid. The Biden
alleged violations of the rule of law and civil liberties.
Administration has stated its intention to reopen the U.S.
While women hold some prominent positions, including
consulate general in Jerusalem that the Trump
within the PA cabinet, men still largely outnumber them in
Administration subsumed into the U.S. embassy to Israel in
traditional leadership roles. Given the West Bank-Gaza split
2019, but has not specified the timing amid opposition from
in 2007, it is unclear if elections will take place again. After
Israeli officials and some Members of Congress. In 2022,
announcing elections for 2021, PA President Mahmoud
the Biden Administration announced that the Office of
Abbas indefinitely postponed them, generating significant
Palestinian Affairs within the U.S. embassy to Israel would
domestic criticism.
report directly to the State Department in Washington rather
Abbas’s age (b. 1935) and reports of health problems have
than the U.S. ambassador to Israel, but Palestinian leaders
contributed to speculation about who might lead the PLO
reportedly are still pushing for the consulate to reopen. The
and PA upon the end of his tenure. Top advisers Hussein al
Administration also has stated opposition to certain
Sheikh (on political affairs) and Majid Faraj (on security)
unilateral Israeli or Palestinian actions, including
have major profiles internationally, but limited domestic
annexation, settlement activity, house demolitions and
popular support. Other key Fatah figures include
evictions, and incitement to violence.
Mohammed Shtayyeh (the PA prime minister), Mahmoud
While the Biden Administration has resumed some types of
al Aloul and Jibril Rajoub. Marwan Barghouti attracts
bilateral aid (see Figure 1) and voluntary contributions to
significant popular support, but has been imprisoned by
UNRWA, the Taylor Force Act (Div. S, Title X of P.L.
Israel since 2002. Nasser al Qudwa is another prominent
115-141) prohibits most Economic Support Fund (ESF) aid
figure who formed a list with Barghouti to rival Fatah for
directly benefitting the PA unless the PLO/PA curtails
the postponed 2021 elections. Mohammed Dahlan enjoys
domestically popular payments that arguably incentivize
support from some Arab states, but was expelled from
acts of terror. The Nita M. Lowey Middle East Partnership
Fatah in 2011.
for Peace Act of 2020 (Div. K, Title VIII of P.L. 116-260)
has authorized $50 million annually from FY2021 to
Hamas and Gaza
FY2025 for Israeli-Palestinian people-to-people and
Hamas controls Gaza through its security forces and obtains
economic cooperation initiatives, and Congress has
resources from smuggling, informal “taxes,” and reported
appropriated these amounts for FY2021 and FY2022.
external assistance from some Arab sources and Iran.
Yahya Sinwar, Hamas’s leader for Gaza, came from
Figure 1. U.S. Bilateral Aid to the Palestinians
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
responsibility for some civil services. For security reasons,
Israel and Egypt maintain tight controls on goods and
people transiting Gaza’s borders.
Source: U.S. Department of State.
In May 2021, Hamas and other Gaza-based militants
Notes: NADR=Nonproliferation, Antiterrorism, Demining and
became involved with Israel in an 11-day conflict. In a
Related Programs, INCLE=International Narcotics Control and Law
pattern that echoed past conflicts from 2008-2009, 2012,
Enforcement, ESF=Economic Support Fund, OCO=Overseas
and 2014, the militants launched rockets indiscriminately
Contingency Operations.
toward Israel, and Israeli military strikes largely decimated
Gaza’s infrastructure. The actions on both sides worsened a
conundrum for international actors seeking to rebuild
Jim Zanotti, Specialist in Middle Eastern Affairs
Gaza’s infrastructure without bolstering Hamas.
IF10644
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The Palestinians: Overview, Aid, and U.S. Policy Issues
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