Office of the Spokesman

Washington, DC
November 10, 2010


U.S. support to help build the institutions and capacities of a future Palestinian state is a central pillar of our strategy for Middle East peace, which includes a two-track approach to achieving, through a negotiated outcome, a sustainable Palestinian state living side by side in peace and security with Israel.

Maintaining dependable assistance from the U.S. on which the Palestinian Authority can plan gives it the ability to continue with reforms and promote growth, which in turn will help reduce the need for donor support in the future. The PA has made steady progress in generating domestic revenue and reducing reliance on external donor support.

To provide needed and timely funds, the U.S. announced today that it had transferred an additional $150 million in direct assistance to the PA.

This $150 million, plus the $75 million provided in April 2010, brings to $225 million the total provided in CY 2010 in direct budget support for the PA. (Note, however, that the U.S. FY 2010 commitment to the PA for direct budget support was $150 million. $75 million was provided in late 2009; the remaining $75 million was provided in April 2010.) This is the Department’s first contribution in FY 2011.

USG Support for West Bank and Gaza programs in FY 2010 is as follows:
PA Direct Budget Support $150M (2 tranches of $75M each)
Security/Rule of Law Programs $102.5M
USAID and MEPI WBG Programs/Projects $250.4M
UN Relief and Works Agency (UNRWA) WBG Emergency Appeal $75M
FY09 Supp provided in FY 2010 for the construction of five UNRWA schools in Gaza $10M
Total WBG Aid for FY 2010 = $587.9M
With the full UNRWA contribution = $739.9M
Total USG Contributions to UNRWA in FY 2010, include:
for General Fund core expenses in the West Bank, Gaza, Syria, Jordan and Lebanon $130M
for WBG Emergency Appeal $75M
for Palestinian refugees in Lebanon $20M
for construction of five UNRWA schools in Gaza $10M
for Palestinian refugees from Iraq $2M

subtotal:

$237m-

PRN: 2010/1620