Download PDF 
(PDF, 149k)
President Bush has signed a bill that allocates $2.42 billion in U.S. aid to Israel, including $2.38 billion in military aid and $39.6 million in assistance for the resettlement of refugees from the former Soviet Union, Eastern Europe and Ethiopia. The House and Senate approved the funding in December as part of a comprehensive federal funding package.
The aid package represents the final year of a 10-year plan between the United States and Israel to phase out economic aid to Israel while gradually increasing the amount of military aid. The two allies recently signed a new 10-year agreement that pledges U.S. support for $30 billion in security assistance to Israel over the next ten years, which will allow the Jewish state to meet new and growing strategic threats.
The bill also includes restrictions on aid to the Palestinian Authority (PA), prohibiting U.S. funds from being used to pay the salaries of Palestinians in the Hamas-controlled Gaza Strip. It further bars the PA from using any of the funds if Hamas and Fatah reconcile—unless Hamas recognizes Israel, renounces terrorism and accepts previous Israeli-Palestinian agreements. Furthermore, the president could not provide funding to the PA unless he reported on specific steps the PA has taken to dismantle the Palestinian terrorist infrastructure.
The Appropriations Committee will be able to block any disbursements that do not conform to these provisions.
For the first time, Congress this year added a provision in the bill linking Egypt’s economic and military aid to Cairo’s efforts to stem weapons smuggling into the Gaza Strip. The provision conditions $100 million of Egypt's assistance on a certification by the secretary of state that Egypt has taken steps to detect and destroy the smuggling network from Egypt into Gaza, implement judicial reforms and curb police abuse, unless a national security waiver is invoked.
Lowey—with the support of her counterparts Rep. Frank Wolf (R-VA) and Sens. Patrick Leahy (D-VT) and Judd Gregg (R-NH)—played the key role in crafting this bill and securing its final passage.
