The United States plans to terminate assistance for building projects in Palestinian territories and redirect much of its annual aid to the Palestinians toward basic humanitarian needs, such as education, health and food, as well as increased assistance for democracy promotion.
The shift in aid priorities was set in motion after the unexpected democratic victory by the radical Islamic organization Hamas in January legislative elections. Shortly after Hamas won the elections, the United States and other key bankrollers of the Palestinian Authority said they would end assistance as soon as Hamas took control of the cabinet, unless the organization recognized the right of Israel to exist.
The United States in the past did not provide much direct assistance to the Palestinian Authority -- and immediately demanded the return of nearly $50 million in direct aid -- but officials needed to determine whether indirect assistance, such as road or school construction projects, would also be affected. In the end, officials decided that any project that had a connection with a government ministry would be ended.
[Excerpt of an article by Glenn Kessler, Washington Post]
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