49–006 

109TH CONGRESS REPT. 109–462 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

PALESTINIAN ANTI-TERRORISM ACT OF 2006 

MAY 11, 2006.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. HYDE, from the Committee on International Relations, 

submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 4681] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on International Relations, to whom was referred 

the bill (H.R. 4681) to promote the development of democratic institutions in areas under the administrative control of the Palestinian 

Authority, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that 

the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SEC. 1. SHORT TITLE. 

This Act may be cited as the ‘‘Palestinian Anti-Terrorism Act of 2006’’. 

SEC. 2. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY. 

(a) DECLARATION OF POLICY.—It shall be the policy of the United States— 

(1) to support a peaceful, two-state solution to end the conflict between Israel 

and the Palestinians in accordance with the Performance-Based Roadmap to a 

Permanent Two-State Solution to the Israeli-Palestinian Conflict (commonly referred to as the ‘‘Roadmap’’); 

(2) to oppose those organizations, individuals, and countries that support terrorism and violence; 

(3) to urge members of the international community to avoid contact with and 

refrain from financially supporting the terrorist organization Hamas or a 

Hamas-controlled Palestinian Authority until Hamas agrees to recognize Israel, 

renounce violence, disarm, and accept prior agreements, including the Roadmap; 

(4) to promote the emergence of a democratic Palestinian governing authority 

that— 


jcorcoran on PROD1PC62 with HEARING
2 

(A) denounces and combats terrorism; 

(B) has agreed to and is taking action to disarm and dismantle any terrorist agency, network, or facility; 

(C) has agreed to work to eliminate anti-Israel and anti-Semitic incitement and the commemoration of terrorists in Palestinian society; 

(D) has agreed to respect the sovereignty of its neighbors; 

(E) acknowledges, respects, and upholds the human rights of all people; 

(F) implements the rule of law, good governance, and democratic practices, including conducting free, fair, and transparent elections in compliance with international standards; 

(G) ensures institutional and financial transparency and accountability; 

and 

(H) has agreed to recognize the State of Israel as an independent, sovereign, Jewish, democratic state; and 

(5) to continue to support assistance to the Palestinian people. 

(b) AMENDMENTS.—Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 

U.S.C. 2351 et seq.) is amended—

(1) by redesignating the second section 620G (as added by section 149 of Public Law 104–164 (110 Stat. 1436)) as section 620J; and 

(2) by adding at the end the following new section: 

‘‘SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY. 

‘‘(a) LIMITATION.—Except as provided in subsection (e), assistance may be provided under this Act to the Palestinian Authority only during a period for which 

a certification described in subsection (b) is in effect. 

‘‘(b) CERTIFICATION.—A certification described in this subsection is a certification 

transmitted by the President to Congress that contains a determination of the President that—

‘‘(1) no ministry, agency, or instrumentality of the Palestinian Authority is 

controlled by a foreign terrorist organization and no member of a foreign terrorist organization serves in a senior policy making position in a ministry, agency, or instrumentality of the Palestinian Authority; 

‘‘(2) the Palestinian Authority has—

‘‘(A) publicly acknowledged Israel’s right to exist as a Jewish state; and 

‘‘(B) recommitted itself and is adhering to all previous agreements and 

understandings by the Palestine Liberation Organization and the Palestinian Authority with the Government of the United States, the Government of Israel, and the international community, including agreements and 

understandings pursuant to the Performance-Based Roadmap to a Permanent Two-State Solution to the Israeli-Palestinian Conflict (commonly referred to as the ‘Roadmap’); and 

‘‘(3) the Palestinian Authority has taken effective steps and made demonstrable progress toward—

‘‘(A) completing the process of purging from its security services individuals with ties to terrorism; 

‘‘(B) dismantling all terrorist infrastructure, confiscating unauthorized 

weapons, arresting and bringing terrorists to justice, destroying unauthorized arms factories, thwarting and preempting terrorist attacks, and fully 

cooperating with Israel’s security services; 

‘‘(C) halting all anti-Israel incitement in Palestinian Authority-controlled 

electronic and print media and in schools, mosques, and other institutions 

it controls, and replacing these materials, including textbooks, with materials that promote tolerance, peace, and coexistence with Israel; 

‘‘(D) ensuring democracy, the rule of law, and an independent judiciary, 

and adopting other reforms such as ensuring transparent and accountable 

governance; and 

‘‘(E) ensuring the financial transparency and accountability of all government ministries and operations. 

‘‘(c) RECERTIFICATIONS.—Not later than 90 days after the date on which the President transmits to Congress an initial certification under subsection (b), and every 

six months thereafter—

‘‘(1) the President shall transmit to Congress a recertification that the requirements contained in subsection (b) are continuing to be met; or 

‘‘(2) if the President is unable to make such a recertification, the President 

shall transmit to Congress a report that contains the reasons therefor. 

‘‘(d) CONGRESSIONAL NOTIFICATION.—Assistance made available under this Act to 

the Palestinian Authority may not be provided until 15 days after the date on which 

the President has provided notice thereof to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and to 


jcorcoran on PROD1PC62 with HEARING
3 

the Committee on Foreign Relations and the Committee on Appropriations of the 

Senate in accordance with the procedures applicable to reprogramming notifications 

under section 634A(a) of this Act. 

‘‘(e) EXCEPTIONS.—

‘‘(1) IN GENERAL.—Subsection (a) shall not apply with respect to the following: 

‘‘(A) ASSISTANCE TO INDEPENDENT ELECTIONS COMMISSIONS.—Assistance 

to any Palestinian independent election commission if the President transmits to Congress a certification that contains a determination of the President that—

‘‘(i) no member of such commission is a member of, affiliated with, 

or appointed by a foreign terrorist organization; and 

‘‘(ii) each member of such commission is independent of the influence 

of any political party or movement. 

‘‘(B) ASSISTANCE TO SUPPORT THE MIDDLE EAST PEACE PROCESS.—Assistance to the Office of the President of the Palestinian Authority for non-security expenses directly related to facilitating a peaceful resolution of the 

Israeli-Palestinian conflict or for the personal security detail of the President of the Palestinian Authority if the President transmits to Congress a 

certification that contains a determination of the President that—

‘‘(i) such assistance is critical to facilitating a peaceful resolution of 

the Israeli-Palestinian conflict; 

‘‘(ii) the President of the Palestinian Authority is not a member of or 

affiliated with a foreign terrorist organization and has rejected the use 

of terrorism to resolve the Israeli-Palestinian conflict; 

‘‘(iii) such assistance will not be used to provide funds to any individual who is a member of or affiliated with a foreign terrorist organization or who has not rejected the use of terrorism to resolve the 

Israeli-Palestinian conflict; and 

‘‘(iv) such assistance will not be retransferred to any other entity 

within or outside of the Palestinian Authority except as payment for 

legal goods or services rendered. 

‘‘(2) ADDITIONAL REQUIREMENTS.—Assistance described in paragraph (1) may 

be provided only if the President—

‘‘(A) determines that the provision of such assistance is important to the 

national security interests of the United States; and 

‘‘(B) not less than 30 days prior to the obligation of amounts for the provision of such assistance—

‘‘(i) consults with the appropriate congressional committees regarding 

the specific programs, projects, and activities to be carried out using 

such assistance; and 

‘‘(ii) submits to the appropriate congressional committees a written 

memorandum that contains the determination of the President under 

subparagraph (A). 

‘‘(3) DEFINITION.—In this subsection, the term ‘appropriate congressional committees’ means—

‘‘(A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and 

‘‘(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. 

‘‘(f) DEFINITIONS.—In this section: 

‘‘(1) FOREIGN TERRORIST ORGANIZATION.—The term ‘foreign terrorist organization’ means an organization designated as a foreign terrorist organization by 

the Secretary of State in accordance with section 219(a) of the Immigration and 

Nationality Act (8 U.S.C. 1189(a)). 

‘‘(2) PALESTINIAN AUTHORITY.—The term ‘Palestinian Authority’ means the interim Palestinian administrative organization that governs part of the West 

Bank and all of the Gaza Strip (or any successor Palestinian governing entity), 

including the Palestinian Legislative Council.’’. 

(c) APPLICABILITY TO UNEXPENDED FUNDS.—Section 620K of the Foreign Assistance Act of 1961, as added by subsection (b), applies with respect to unexpended 

funds obligated for assistance under the Foreign Assistance Act of 1961 to the Palestinian Authority before the date of the enactment of this Act. 

(d) REPORT BY COMPTROLLER GENERAL.—Not later than 180 days after the date 

of the enactment of this Act, the Comptroller General of the United States shall 

submit to the appropriate congressional committees a report that contains a review 

of the proposed procedures by which United States assistance to the Palestinian Authority under the Foreign Assistance Act of 1961 will be audited by the Department 

of State, the United States Agency for International Development, and all other relVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6621 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
4 

evant departments and agencies of the Government of the United States and any 

recommendations for improvement of such procedures. 

(e) SENSE OF CONGRESS.—It is the sense of Congress that the President should 

be guided by the principles and procedures described in section 620K of the Foreign 

Assistance Act of 1961, as added by subsection (b), in providing direct assistance to 

the Palestinian Authority under any provision of law other than the Foreign Assistance Act of 1961. 

SEC. 3. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND GAZA. 

(a) AMENDMENT.—Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 

U.S.C. 2351 et seq.), as amended by section 2(b)(2) of this Act, is further amended 

by adding at the end the following new section: 

‘‘SEC. 620L. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND GAZA. 

‘‘(a) LIMITATION.—Except as provided in subsection (d), assistance may be provided under this Act to nongovernmental organizations for the West Bank and Gaza 

only during a period for which a certification described in section 620K(b) of this 

Act is in effect with respect to the Palestinian Authority. ‘‘(b) MARKING REQUIREMENT.—Assistance provided under this Act to nongovernmental organizations for the West Bank and Gaza shall be marked as assistance 

from the Government of the United States unless the Secretary of State or the Administrator of the United States Agency for International Development determines 

that such marking will endanger the lives or safety of persons delivering or receiving such assistance or would have a material adverse effect on the implementation 

of such assistance. ‘‘(c) CONGRESSIONAL NOTIFICATION.—Assistance made available under this Act to 

nongovernmental organizations for the West Bank and Gaza may not be provided 

until 15 days after the date on which the President has provided notice thereof to 

the Committee on International Relations and the Committee on Appropriations of 

the House of Representatives and to the Committee on Foreign Relations and the 

Committee on Appropriations of the Senate in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of this Act. ‘‘(d) EXCEPTIONS.—Subsection (a) shall not apply with respect to the following: ‘‘(1) ASSISTANCE TO MEET BASIC HUMAN HEALTH NEEDS.—The provision of food, 

water, medicine, sanitation services, or other assistance to directly meet basic 

human health needs. ‘‘(2) OTHER TYPES OF ASSISTANCE.—The provision of any other type of assistance if the President— ‘‘(A) determines that the provision of such assistance will further the national security interests of the United States; and ‘‘(B) not less than 25 days prior to the obligation of amounts for the provision of such assistance— ‘‘(i) consults with the appropriate congressional committees regarding 

the specific programs, projects, and activities to be carried out using 

such assistance; and 

‘‘(ii) submits to the appropriate congressional committees a written 

memorandum that contains the determination of the President under 

subparagraph (A) and an explanation of how failure to provide the proposed assistance would be inconsistent with furthering the national security interests of the United States. 

‘‘(3) DEFINITION.—In this subsection, the term ‘appropriate congressional committees’ means—

‘‘(A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and 

‘‘(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.’’. 

(b) OVERSIGHT AND RELATED REQUIREMENTS.—

(1) OVERSIGHT.—For each of the fiscal years 2007 and 2008, the Secretary of 

State shall certify to the appropriate congressional committees not later than 

30 days prior to the initial obligation of amounts for assistance to nongovernmental organizations for the West Bank or Gaza under the Foreign Assistance 

Act of 1961 that procedures have been established to ensure that the Comptroller General of the United States will have access to appropriate United 

States financial information in order to review the use of such assistance. 

(2) VETTING.—Prior to any obligation of amounts for assistance to nongovernmental organizations for the West Bank or Gaza under the Foreign Assistance 

Act of 1961, the Secretary of State shall take all appropriate steps to ensure 

that such assistance is not provided to or through any individual or entity that 

the Secretary knows, or has reason to believe, advocates, plans, sponsors, engages in, or has engaged in, terrorist activity. The Secretary shall, as approVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
5 

priate, establish procedures specifying the steps to be taken in carrying out this 

paragraph and shall terminate assistance to any individual or entity that the 

Secretary has determined advocates, plans, sponsors, or engages in terrorist activity. 

(3) PROHIBITION.—No amounts made available for any fiscal year for assistance to nongovernmental organizations for the West Bank or Gaza under the 

Foreign Assistance Act of 1961 may be made available for the purpose of recognizing or otherwise honoring individuals or the families of individuals who commit, or have committed, acts of terrorism. 

(4) AUDITS.—

(A) IN GENERAL.—The Administrator of the United States Agency for 

International Development shall ensure that independent audits of all contractors and grantees, and significant subcontractors and subgrantees, that 

receive amounts for assistance to nongovernmental organizations for the 

West Bank or Gaza under the Foreign Assistance Act of 1961 are conducted 

to ensure, among other things, compliance with this subsection. 

(B) AUDITS BY INSPECTOR GENERAL OF USAID.—Of the amounts available 

for any fiscal year for assistance to nongovernmental organizations for the 

West Bank or Gaza under the Foreign Assistance Act of 1961, up to 

$1,000,000 for each such fiscal year may be used by the Office of the Inspector General of the United States Agency for International Development for 

audits, inspections, and other activities in furtherance of the requirements 

of subparagraph (A). Such amounts are in addition to amounts otherwise 

available for such purposes. 

(c) SENSE OF CONGRESS.—It is the sense of Congress that the President should 

be guided by the principles and procedures described in section 620L of the Foreign 

Assistance Act of 1961, as added by subsection (a), in providing assistance to nongovernmental organizations for the West Bank and Gaza under any provision of law 

other than the Foreign Assistance Act of 1961. 

SEC. 4. UNITED NATIONS AGENCIES AND PROGRAMS. 

(a) REVIEW AND REPORT.—

(1) IN GENERAL.—Not later than 60 days after the date of the enactment of 

this Act, the President shall—

(A) conduct an audit of the functions of the entities specified in paragraph 

(2); and 

(B) transmit to the appropriate congressional committees a report containing recommendations for the elimination of such entities and efforts 

that are duplicative or fail to ensure balance in the approach of the United 

Nations to Israeli-Palestinian issues. 

(2) ENTITIES SPECIFIED.—The entities referred to in paragraph (1) are the following: 

(A) The United Nations Division for Palestinian Rights. 

(B) The Committee on the Exercise of the Inalienable Rights of the Palestinian People. 

(C) The United Nations Special Coordinator for the Middle East Peace 

Process and Personal Representative to the Palestine Liberation Organization and the Palestinian Authority. 

(D) The NGO Network on the Question of Palestine. 

(E) The Special Committee to Investigate Israeli Practices Affecting the 

Human Rights of the Palestinian People and Other Arabs of the Occupied 

Territories. 

(F) Any other entity the Secretary determines results in duplicative efforts or funding or fails to ensure balance in the approach to Israeli-Palestinian issues. 

(b) IMPLEMENTATION OF RECOMMENDATIONS BY PERMANENT REPRESENTATIVE.—

(1) IN GENERAL.—The United States Permanent Representative to the United 

Nations shall use the voice, vote, and influence of the United States at the 

United Nations to seek the implementation of the recommendations contained 

in the report required under subsection (a)(1)(B). 

(2) WITHHOLDING OF FUNDS.—Until such recommendations have been implemented, the Secretary of State is authorized to withhold from United States 

contributions to the regular assessed budget of the United Nations for a biennial period amounts that are proportional to the percentage of such budget that 

are expended for such entities. 

(c) GAO AUDIT.—The Comptroller General shall conduct an audit of the status of 

the implementation of the recommendations contained in the report required under 

subsection (a)(1)(B). 


jcorcoran on PROD1PC62 with HEARING
6 

(d) WITHHOLDING OF FUNDS WITH RESPECT TO THE PALESTINIAN AUTHORITY.—The 

Secretary of State is authorized to withhold from United States contributions to the 

regular assessed budget of the United Nations for a biennial period amounts that 

are proportional to the percentage of such budget that are expended for any United 

Nations affiliated or specialized agency that provides assistance directly to the Palestinian Authority during any period for which a certification described in section 

620K(b) of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of this 

Act) is not in effect with respect to the Palestinian Authority. 

SEC. 5. DESIGNATION OF TERRITORY CONTROLLED BY THE PALESTINIAN AUTHORITY AS 

TERRORIST SANCTUARY. 

It is the sense of Congress that, during any period for which a certification described in section 620K(b) of the Foreign Assistance Act of 1961 (as added by section 

2(b)(2) of this Act) is not in effect with respect to the Palestinian Authority, the territory controlled by the Palestinian Authority should be deemed to be in use as a 

sanctuary for terrorists or terrorist organizations for purposes of section 6(j)(5) of 

the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(5)) and section 140 

of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 

2656f). 

SEC. 6. DENIAL OF VISAS FOR OFFICIALS OF THE PALESTINIAN AUTHORITY. 

(a) IN GENERAL.—A visa shall not be issued to any alien who is an official of, affiliated with, or serving as a representative of the Palestinian Authority during any 

period for which a certification described in section 620K(b) of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of this Act) is not in effect with respect 

to the Palestinian Authority. 

(b) WAIVER.—Subsection (a) shall not apply—

(1) if the President determines and certifies to the appropriate congressional 

committees, on a case-by-case basis, that the issuance of a visa to an alien described in such subsection is important to the national security interests of the 

United States; or 

(2) with respect to visas issued in connection with United States obligations 

under the Act of August 4, 1947 (61 Stat. 756) (commonly known as the ‘‘United 

Nations Headquarters Agreement Act’’). 

SEC. 7. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES OF THE PALESTINIAN 

AUTHORITY AND THE PALESTINE LIBERATION ORGANIZATION STATIONED AT THE 

UNITED NATIONS IN NEW YORK CITY. 

The President shall restrict the travel of officials and representatives of the Palestinian Authority and of the Palestine Liberation Organization who are stationed at 

the United Nations in New York City to a 25-mile radius of the United Nations 

headquarters building during any period for which a certification described in section 620K(b) of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of 

this Act) is not in effect with respect to the Palestinian Authority. 

SEC. 8. PROHIBITION ON PALESTINIAN AUTHORITY REPRESENTATION IN THE UNITED 

STATES. 

(a) PROHIBITION.—Notwithstanding any other provision of law, it shall be unlawful to establish or maintain an office, headquarters, premises, or other facilities or 

establishments within the jurisdiction of the United States at the behest or direction 

of, or with funds provided by, the Palestinian Authority or the Palestine Liberation 

Organization during any period for which a certification described in section 620K(b) 

of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of this Act) is not 

in effect with respect to the Palestinian Authority. 

(b) ENFORCEMENT.—

(1) ATTORNEY GENERAL.—The Attorney General shall take the necessary steps 

and institute the necessary legal action to effectuate the policies and provisions 

of subsection (a). 

(2) RELIEF.—Any district court of the United States for a district in which a 

violation of subsection (a) occurs shall have authority, upon petition of relief by 

the Attorney General, to grant injunctive and such other equitable relief as it 

shall deem necessary to enforce the provisions of subsection (a). 

(c) WAIVER.—

(1) AUTHORITY.—The President may waive the application of subsection (a) for 

a period of 180 days if the President determines and certifies to the appropriate 

congressional committees that such waiver is vital to the national security interests of the United States and provides an explanation of how the failure to 

waive the application of subsection (a) would be inconsistent with the vital national security interests of the United States. 


jcorcoran on PROD1PC62 with HEARING
7 

(2) RENEWAL.—The President may renew the waiver described in paragraph 

(1) for successive 180-day periods if the President makes the determination and 

certification described in such paragraph for each such period. 

SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS. 

(a) UNITED STATES POLICY.—It shall be the policy of the United States that the 

United States Executive Director at each international financial institution shall 

use the voice, vote, and influence of the United States to prohibit assistance to the 

Palestinian Authority during any period for which a certification described in section 620K(b) of the Foreign Assistance of 1961 (as added by section 2(b)(2) of this 

Act) is not in effect with respect to the Palestinian Authority. 

(b) DEFINITION.—In this section, the term ‘‘international financial institution’’ has 

the meaning given the term in section 1701(c)(2) of the International Financial Institutions Act. 

SEC. 10. DIPLOMATIC CONTACTS WITH PALESTINIAN TERROR ORGANIZATIONS. 

It shall be the policy of the United States that no officer or employee of the United 

States Government shall negotiate or have substantive contacts with members or 

official representatives of Hamas, Palestinian Islamic Jihad, the Popular Front for 

the Liberation of Palestine, al-Aqsa Martyrs Brigade, or any other Palestinian terrorist organization, unless and until such organization—

(1) recognizes Israel’s right to exist; 

(2) renounces the use of terrorism; 

(3) dismantles the infrastructure necessary to carry out terrorist acts, including the disarming of militias and the elimination of all instruments of terror; 

and 

(4) recognizes and accepts all previous agreements and understandings between the State of Israel and the Palestine Liberation Organization and the 

Palestinian Authority. 

SEC. 11. DEFINITIONS. 

In this Act: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘‘appropriate congressional committees’’ means—

(A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and 

(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. 

(2) PALESTINIAN AUTHORITY.—The term ‘‘Palestinian Authority’’ has the 

meaning given the term in section 620K(e)(2) of the Foreign Assistance Act of 

1961 (as added by section 2(b)(2) of this Act). 

PURPOSE AND SUMMARY

H.R. 4681, the ‘‘Palestinian Anti-Terrorism Act of 2006,’’ as reported by the Committee on International Relations, both demonstrates Congress’s disapproval of the policies of the new Hamasdominated government of the Palestinian Authority and prevents 

United States taxpayer funds from supporting Hamas. H.R. 4681 

sets out clear criteria which the Palestinian Authority must meet 

before it may receive funds pursuant to the Foreign Assistance Act, 

and restricts United States Government funding under that Act for 

nongovernmental organizations, preventing them from, in effect, 

supporting the Palestinian Authority indirectly. Once the Palestinian Authority has credibly demonstrated that it has changed 

course, assistance to it and to nongovernmental organizations in 

the West Bank and Gaza may resume flowing without significant 

restrictions imposed under H.R. 4681. 

The bill also includes language intended to restrict funding for 

the Palestinian Authority through other mechanisms, such as the 

international financial institutions, and to restrict the presence of 

the Palestinian Authority or the Palestinian Liberation Organization in the United States. 


jcorcoran on PROD1PC62 with HEARING
8 

BACKGROUND AND NEED FOR THE LEGISLATION

The United States has provided, albeit with restrictions, hundreds of millions of dollars in assistance to the Palestinian people 

since the beginning of the Oslo process. Because of the problematic 

nature of the government of the Palestinian Authority, in particular its corruption and its weak adherence to its commitments 

to cooperate with Israel in the security realm, relatively little funding has been given directly to the Palestinian Authority. Rather, 

the bulk of the funding has gone to Palestinian nongovernmental 

organizations or through non-Palestinian based contractors or 

grantees of the United States Agency for International Development (USAID). 

During Fiscal Years 2005 and 2006, the United States took the 

following actions to support the Palestinians and the Palestinian 

Authority financially: (1) Congress provided for $75 million in Economic Support Funds (ESF) for the United States Agency of International Development’s West Bank and Gaza program in the 2005 

Consolidated Appropriations Act (P.L. 108–447); 2) Congress appropriated $200 million in supplemental ESF in the Fiscal Year 2005 

Iraq Supplemental Appropriations Act (P.L. 109–13); and 3) in the 

FY2006 Foreign Operations Appropriations Act (P.L. 109–102), 

Congress provided $150 million in ESF for the West Bank and 

Gaza Strip. 

After Mahmud Abbas (‘‘Abu Mazen’’) became Prime Minister of 

the Palestinian Authority and, later, when he became President of 

the Authority after the death of Palestinian leader Yasir Arafat, 

the United States began to provide more funds directly to the Palestinian Authority. This new direction was an attempt to assist, 

and to be seen to be assisting, the Palestinian Authority as it came 

out from under the domination of Arafat, and to encourage it to 

fully live up to its commitments and to govern properly. 

Direct United States funding for the Palestinian Authority 

amounted to $41 million in 1993–94. There was no direct funding 

from that time until 2003, when $20 million was provided for Palestinian Authority infrastructure projects. In December, 2004, $20 

million was used to pay overdue Palestinian utility bills owed to 

Israeli companies. In May, 2005, an additional $50 million as 

transferred to the Palestinian Authority, using a waiver, to improve roads, schools, health clinics, and water facilities. The direct 

aid was aimed to help ease the transition after Israel withdrew 

from Gaza. (The United States Government has since sought the 

return of these funds because of the Administration’s cut-off of assistance, and as of April 2006, $30 million has been returned. The 

State Department has said that it will continue to seek the return 

of the remainder.) In addition, $2.3 million was used to by the 

United States Security Coordinator to provide non-lethal assistance 

(vehicles, riot gear, and basic provisions) to security forces under 

the command of the Palestinian Authority’s Interior Ministry 

Hamas, the Arabic acronym for the ‘‘Islamic Resistance Movement,’’ is a terrorist organization responsible for the deaths of 

many innocent Israelis (of various religions and ethnicities) and 

Americans. It also acts in the political sphere and carries on welfare activities in support of its larger aim of remaking the Palestinian Authority as an Islamic state and destroying Israel. 


jcorcoran on PROD1PC62 with HEARING
9 

The House has long been on record as opposing the participation 

of Hamas in the Palestinian government. On December 16, 2005, 

by a vote of 397–17, with seven voting ‘‘present,’’ the House passed 

House Resolution 575, asserting that ‘‘the inclusion of Hamas, or 

any other terrorist group on the State Department list of foreign 

terrorist organizations, into the Palestinian governing structure 

will inevitably raise serious policy considerations for the United 

States, potentially undermining the continued ability of the United 

States to provide financial assistance and conduct normal relations 

with the Palestinian Authority.’’

Hamas subsequently won a significant majority of the seats (although only a plurality of votes cast) in the Palestinian elections 

in January of 2006. 

In February, 2006, the Senate and the House passed Senate Concurrent Resolution 79, expressing, in clear and simple language, 

the sense of Congress that no United States assistance should be 

provided directly to the Palestinian Authority if any representative 

political party holding a majority of parliamentary seats within it 

maintains a position calling for the destruction of Israel. 

Representative Ileana Ros-Lehtinen introduced H.R. 4681, the 

‘‘Palestinian Anti-Terrorism Act of 2006’’ on February 1, 2006. This 

bill was referred to the House International Relations Committee. 

On April 6, 2006, the Committee considered the bill and ordered 

it reported favorably, with an amendment in the nature of a substitute. 

HEARINGS

During recent years, the Committee on International Relations 

held the following hearings regarding the Palestinians or the Middle East peace process: March 2, 2006, United States Policy Toward the Palestinians in the Aftermath of Parliamentary Elections; 

February 10, 2005, The Way Forward in the Middle East Peace 

Process; and June 11, 2003, The Middle East Peace Process at a 

Crossroads. 

The Subcommittee on the Middle East and Central Asia held 

hearings on the same topics as follows: March 8, 2006: Palestinian 

Authority Elections: Implications for Peace, Regional Security, and 

U.S. Assistance; September 21, 2005: The Middle East Peace Process and U.S. Strategic Priorities Post-Disengagement; and March 9, 

2005: U.S. Policy Toward the Palestinians in the Post-Arafat Era. 

In addition, on May 25, 2005, the Committee received Mr. 

Mahmud Abbas, President of the Palestinian Authority. On May 

15, 2003, a classified briefing was given to Members by the Honorable William J. Burns, Assistant Secretary, Bureau of Near Eastern Affairs, Department of State. 

Under the auspices of the Subcommittee on the Middle East and 

Central Asia or its Chair, meetings or briefings have been held 

with His Excellency Natan Sharansky, Minister for Jerusalem and 

Diaspora Affairs of the State of Israel (February 9, 2005); the Honorable William J. Burns, Assistant Secretary, Bureau of Near Eastern Affairs, U.S. Department of State (March 16, 2004, November 

6, 2003, May 13, 2003, and February 13, 2003); and Ambassador 

Marc Otte, the European Union’s Special Representative for the 

Middle East Peace Process (March 10, 2004). 


jcorcoran on PROD1PC62 with HEARING
10 

COMMITTEE CONSIDERATION

On April 6, 2006, the Committee on International Relations met 

in open session and ordered favorably reported the bill, H.R. 4681, 

as amended, by a vote of 36–2, a quorum being present. 

VOTE(S) OF THE COMMITTEE

Clause (3)(b) of rule XIII of the Rules of the House of Representatives requires that the results of each record vote on an amendment or motion to report, together with the names of those voting 

for or against, be printed in the Committee Report. 

A motion to report H.R. 4681, as amended, favorably to the 

House was agreed to by a record vote of 36 ayes to 2 noes. 

Voting yes: Hyde, Smith (NJ), Burton, Gallegly, Ros-Lehtinen, 

Rohrabacher, Royce, Chabot, Tancredo, Issa, Flake, Green, Weller, 

McCotter, Harris, Wilson, Boozman, Barrett, Fortenberry, McCaul, 

Poe, Lantos, Berman, Ackerman, Faleomavaega, Sherman, Wexler, 

Engel, Meeks, Crowley, Berkley, Schiff, Smith (WA), Chandler, 

Cardoza, and Carnahan. 

Voting no: Blumenauer and McCollum. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of House rule XIII is inapplicable because this legislation does not provide new budgetary authority or increased tax 

expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

MAY 4, 2006. 

Hon. HENRY J. HYDE, 

Chairman, Committee on International Relations, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4681, the Palestine AntiTerrorism Act of 2006. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sam Papenfuss. 

Sincerely, 

DONALD B. MARRON, 

Acting Director. 

Enclosure. 

H.R. 4681—Palestine Anti-Terrorism Act of 2006 

H.R. 4681 would impose restrictions on aid provided to the Palestinian Authority (PA) and impose other restrictions on activity by 

the PA and its officials in the United States. CBO estimates that 


jcorcoran on PROD1PC62 with HEARING
11 

implementing H.R. 4681 would have no significant budgetary impact because the Administration has effectively implemented the 

provisions in the bill. CBO estimates that the bill would not affect 

direct spending or receipts. H.R. 4681 contains no intergovernmental or private-sector mandates as defined in the Unfunded 

Mandates Reform Act and would not affect the budgets of state, 

local, or tribal governments. 

Section 2 would prohibit the United States from providing aid to 

the PA unless the President has certified that: 

• No elements of the PA have any ties to terrorist organizations, 

• The PA has publicly recognized Israel’s right to exist as a 

Jewish state, 

• The PA is recognizing and following previous agreements 

with respect to establishing peace between Israel and the PA, 

• The PA is working to eliminate terrorism in its jurisdiction, and 

• The PA is moving towards a more transparent and accountable government. 

The prohibition would not apply to support for independent elections commissions and the Middle East peace process. 

Section 3 would allow aid to the West Bank or Gaza only if such 

aid promotes the national security interests of the United States 

and for basic human health needs, such as water, food, medicine, 

or sanitation. According to the Department of State, this humanitarian aid will total about $250 million in 2006 (from funds already 

appropriated), though aid for future years is uncertain. 

Section 4 would authorize the Secretary of State to withhold, in 

part, U.S. contributions to the assessed budget of the United Nations (UN) under the following conditions: 

• The UN fails to implement recommendations from an 

audit of its approach to Israeli-Palestinian issues, or 

• UN specialized or affiliated agencies provide direct assistance to the PA. 

Based on information from the Department of State, CBO does 

not expect that these conditions would be met. Consequently, the 

department would continue to make contributions. (Enacting the 

bill could result in direct spending savings if the department does 

withhold contributions after the appropriation of funds for that 

purpose, because it would affect outlays from funds already appropriated. However, CBO believes that action would be unlikely.) 

The CBO staff contact is Sam Papenfuss. This estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget 

Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

This bill will have accomplished its principle goals if it results either in a change in the policies of the Palestinian Authority or the 

withholding of direct United States assistance to it (except as specifically provided). 


jcorcoran on PROD1PC62 with HEARING
12 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8, of the Constitution. 

SECTION-BY-SECTION ANALYSIS

Section-by-section Analysis of the Amendment in the Nature of 

a Substitute adopted by the Committee on International Relations: 

Section 1 provides a short title for the bill. 

Section 2(a) contains a declaration of policy. According to the declaration of policy, it shall be the policy of the United States: (1) to 

support a peaceful, two-state solution to end the conflict between 

Israel and the Palestinians in accordance with the ‘‘Roadmap’’; (2) 

to oppose those organizations, individuals, and countries that support terrorism and violence; (3) to urge members of the international community to avoid contact with and refrain from financially supporting Hamas or a Hamas-controlled Palestinian Authority until Hamas agrees to recognize Israel, renounce violence, disarm, and accept prior agreements, including the roadmap; (4) to 

promote the emergence of a democratic Palestinian governing authority that: (A) denounces and combats terrorism; (B) has agreed 

to and is taking action to disarm and dismantle any terrorist agency, network, or facility; (C) has agreed to work to eliminate antiIsrael and anti-Semitic incitement and the commemoration of terrorists in Palestinian society; (D) has agreed to respect the sovereignty of its neighbors; (E) acknowledges, respects, and upholds 

the human rights of all people; (F) implements the rule of law, good 

governance, and democratic practices, including conducting free, 

fair, and transparent elections in compliance with international 

standards; (G) ensures institutional and financial transparency and 

accountability; and (H) has agreed to recognize the State of Israel 

as an independent, sovereign, Jewish, democratic state; and (5) to 

continue to support assistance to the Palestinian people. 

It is the view of the Committee that funding levels for assistance 

to the Palestinian people should be maintained, or even increased, 

given their needs, in coming years. 

Section 2(b) redesignates an improperly designated provision 

added to the Foreign Assistance Act during the 104th Congress and 

adds a new section 620K of the Foreign Assistance Act entitled 

‘‘Limitation on Assistance to the Palestinian Authority.’’ The remainder of the analysis of this subsection consists of an analysis 

of new section 620K. 

Under subsection (a) (of new section 620K), except as provided in 

subsection (e), assistance under the Foreign Assistance Act may be 

provided to the Palestinian Authority only during a period for 

which a certification under subsection (b) (a ‘‘certification’’) is in effect. 

It should be noted that the section speaks in a mandatory sense 

only to assistance under the Foreign Assistance Act and only to direct assistance to the Palestinian Authority (as defined in section 

620K). However, it is the sense of Congress, as noted in Subsection 

(e) of section 2, that the President should be guided by the principles and procedures described in section 620K of the Foreign Assistance Act, as added by subsection (b) of section 2, in providing 


jcorcoran on PROD1PC62 with HEARING
13 

direct assistance to the Palestinian Authority under any provision 

of law other than the Foreign Assistance Act of 1961. 

In addition, it should be noted that all of the special authorities 

of the Foreign Assistance Act apply, including the provisions providing that assistance to protect human health may be provided 

even if assistance would otherwise be prohibited (section 104 of the 

Act). For example, the Committee did not include a specific exception to permit direct assistance to the Palestinian Authority to help 

it deal with avian flu: sufficient authority for such assistance is already included in the Foreign Assistance Act. 

Subsection (b) defines a certification as being one which is transmitted by the President to Congress that contains a determination 

of the President that: (a) no ministry, agency, or instrumentality of 

the Palestinian Authority is controlled by a foreign terrorist organization and no member of a foreign terrorist organization serves in 

a senior policy-making position in a ministry, agency, or instrumentality of the Palestinian Authority; (b) the Palestinian Authority has publicly acknowledged Israel’s right to exist as a Jewish 

state; and recommitted itself and is adhering to all previous agreements and understandings with the Government of the United 

States, the Government of Israel, and the international community, 

including agreements and understandings pursuant to the Roadmap; and (c) the Palestinian Authority has taken effective steps 

and made demonstrable progress toward: completing the process of 

purging from its security services individuals with ties to terrorism; 

dismantling all terrorist infrastructure within its jurisdiction, confiscating unauthorized weapons, arresting and bringing terrorists 

to justice, destroying unauthorized arms factories, thwarting and 

preempting terrorist attacks, and fully cooperating with Israel’s security services; halting all anti-Israel incitement in Palestinian Authority-controlled electronic and print media and in schools, 

mosques, and other institutions it controls, and replacing these materials, including textbooks, with materials that promote tolerance, 

peace, and coexistence with Israel; ensuring democracy, the rule of 

law, and an independent judiciary, and adopting other reforms 

such as ensuring transparent and accountable governance; and ensuring the financial transparency and accountability of all government ministries and operations. It is the intent of the Committee 

that the reference to ‘‘adherence’’ to agreements and understandings does not require perfect performance, but that a rule of 

reason apply. 

Subsection (c) provides that in order to maintain a certification 

in effect, the President must transmit a recertification within 6 

months of the President’s last certification (except that a recertification must be made within 90 days, in the case of the first recertification under the subsection). If the President is unable to make 

a recertification, he shall transmit to Congress a report that contains the reasons the President is unable to make such a recertification. 

Subsection (d) provides that assistance to the Palestinian Authority under the Foreign Assistance Act not be provided until 15 

days until after a notice thereof is provided by the President to the 

Committees on International Relations and Appropriations of the 

House and to the Committees on Foreign Relations and AppropriaVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
14 

tions of the Senate under the provisions of section 634A of the Foreign Assistance Act. 

Subsection (e) provides for exceptions to the general rule of subsection (a). The following kinds of assistance may be provided to 

the Palestinian Authority: 

(1) Assistance to any Palestinian independent election commission, if the President transmits to Congress a certification that contains a determination of the President that no member of the commission is a member of, affiliated with, or appointed by, a foreign 

terrorist organization and that each member of such commission is 

independent of the influence of any political party or movement. 

(2) Assistance to the Office of the President of the Palestinian 

Authority, which may only be provided for non-security expenses 

directly related to facilitating a peaceful solution of the Israeli-Palestinian conflict, or for the personal security detail of the President 

of the Palestinian Authority, if the President transmits to Congress 

a certification containing a determination of the President that: (A) 

such assistance is critical to facilitating a peaceful solution of the 

Israeli-Palestinian conflict; (B) the President of the Palestinian Authority is not a member of or affiliated with a foreign terrorist organization and has rejected the use of terrorism to resolve the 

Israeli-Palestinian conflict; (C) such assistance will not be used to 

provide funds to any individual who is a member of or affiliated 

with a foreign terrorist organization or who has not rejected the 

use of terrorism to resolve the Israeli-Palestinian conflict; and (D) 

such assistance will not be retransferred to an other entity within 

or outside of the Palestinian Authority except as payment for legal 

goods supplied or services rendered. 

Some members of the Committee believe that the Administration 

has made a determination to treat the Palestinian Authority in its 

constituent parts, with parts of the Palestinian Authority that are 

not controlled by the Hamas Prime Minister or ministries that report to the Prime Minister as not being subject to the administrative cutoff of funding that was announced earlier this year. Some 

members of the Committee have also expressed concern regarding 

President Abbas’ ability to promote meaningful change and dialogue, based on his past performance and, therefore, with the notion that broad assistance to the office of the President is appropriate. 

The Committee approved the narrow exceptions in subsection (e) 

to allow certain flexibility to promote democratic change through 

support for truly independent election commissions. The Committee 

believes that providing assistance for the President’s office for the 

limited purposes of maintaining personal protection for President 

Abbas and to fund expenses directly related to facilitating a peaceful solution of the Israeli-Palestinian conflict is appropriate. In determining what expenses qualify as ‘‘directly related to facilitating 

a peaceful solution of the Israeli-Palestinian conflict,’’ the Committee expects close consultation from the Administration with respect to such expenses. At the same time, the Committee does not 

intend that the expression ‘‘directly relating to facilitating a peaceful resolution’’ be limited to assistance, for example, for travel, or 

to pay the salaries of negotiating teams. 

Assistance under this subsection (e) is subject to the requirement 

that the President determine that the provision of such assistance 


jcorcoran on PROD1PC62 with HEARING
15 

is important to the national security interests of the United States 

and that 30 days prior to the obligation of such amounts the President consult with the appropriate congressional committees regarding the specific programs, projects, and activities to be carried out 

and submit a written memorandum containing that determination. 

The 30-day consultation period may run concurrently with the 

15-day notification period under subsection (d) (relating to procedures under section 634A of the Foreign Assistance Act). 

Subsection (f) provides definitions for the section. The Palestinian Authority is defined as the ‘‘interim Palestinian administrative organization that governs part of the West Bank and all of the 

Gaza Strip (or any successor Palestinian governing entity), including the Palestinian Legislative Council.’’ It does not include municipalities within the area governed by the Palestinian Authority. 

Subsection (c) of Section 2 makes the provisions of section 620K 

of the Foreign Assistance Act of 1961, as added by subsection (b), 

applicable to the unexpended balances of funds obligated prior to 

the date of the enactment of this Act. It is the view of the Committee that this provision should not result in any diminution of 

funding available for the Palestinian people, and that such funds 

should be made available for the Palestinian people through other 

mechanisms. 

Subsection (d) of Section 2 requires the Comptroller General to 

submit within 180 days of enactment a report on proposed procedures by which United States assistance to the Palestinian Authority under the Foreign Assistance Act will be audited by relevant 

departments and agencies of the United States and to make any 

recommendations for the improvement of such procedures. 

Subsection (e) of Section 2 expresses the sense of Congress that 

the President should be guided by the principles and procedures 

described in section 620K of the Foreign Assistance Act, as added 

by subsection (b) of Section 2, in providing direct assistance to the 

Palestinian Authority under any provision of law other than the 

Foreign Assistance Act of 1961. Although new section 620K does 

not purport to govern assistance provided outside the Foreign Assistance Act, it is important that the spirit of section 620K be followed insofar as possible in the provision of other assistance. 

Section 3(a) adds a new section 620L of the Foreign Assistance 

Act entitled ‘‘Limitation on Assistance for the West Bank and 

Gaza.’’ The remainder of the analysis of this subsection consists of 

an analysis of new section 620L. 

Under subsection (a) (of new section 620L) assistance may be 

provided under the Foreign Assistance Act to nongovernmental organizations for the West Bank and Gaza (except as provided in 

subsection (d)) only during a period for which a certification described in section 620K(b) of this Act is in effect with respect to the 

Palestinian Authority. 

Subsection (b) provides a statutory-enhanced marking requirement for aid provided to the Palestinians through nongovernmental 

organizations because the Committee deems it especially important 

that the Palestinians understand that the Congress is concerned 

about their welfare and endeavoring to help them, despite the government that they elected. Assistance provided under the Foreign 

Assistance Act to nongovernmental organizations for the West 

Bank and Gaza shall be marked as assistance from the GovernVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
16 

ment of the United States unless the Secretary, or the Administrator of the United States Agency for International Development, 

determines that such marking will endanger the lives or safety of 

persons delivering or receiving such assistance or would have a material adverse effect on the implementation of that assistance. 

Subsection (c) requires notification to the Committee on International Relations and the Committee on Appropriations of the 

House of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate 15 days 

prior to the provision of any assistance under section 620L, in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of the Foreign Assistance Act. 

The Committee is concerned that notifications for the purpose of 

this subsection, as well as for other purposes under section 634A, 

not be made during Congressional recesses absent mutually acceptable arrangements, made in advance, with each of the relevant 

Committees. 

This notification period may run concurrently with the consultation period of 25 days applicable to ‘‘any other’’ assistance specified 

in paragraph (2) of subsection (d) of proposed section 620L. 

Subsection (d) provides exceptions to the general rule of subsection (a), allowing: 

(1) The provision of food, water, medicine, sanitation services, or 

other assistance to meet basic human health needs; and 

(2) Any other type of assistance, if the President: (A) determines 

that the provision of such assistance will further the national security interests of the United States; and (B) not less than 25 days 

prior to the obligation of amounts for the provision of such assistance: (1) consults with the appropriate congressional committees 

regarding the specific programs, projects, and activities to be carried out using such assistance; and (2) submits to the appropriate 

congressional committees a written memorandum that contains the 

determination of the President under subparagraph (A) and an explanation of how failure to provide the proposed assistance would 

be inconsistent with furthering the national security interests of 

the United States. 

The exceptions were reviewed carefully in the Committee’s approach to H.R. 4681. The Committee believes that despite (or, perhaps, because of) the results of the January elections the United 

States must maintain its historical commitment to help meet the 

humanitarian needs of the Palestinian people. In addition, the 

Committee recognized that, beyond such assistance, it may be prudent to engage in programs other than those designed to meet 

basic human health needs, such as democracy or rule-of-law programs that support the growth of institutions outside the Palestinian Authority, or other critical needs. The Committee therefore 

agreed that the Administration could reasonably propose such assistance consistent with furthering United States national security 

interest, and subject to the statutory mandate for congressional 

consultation. The Committee expects full consultation from the Executive Branch as it carries forward all its assistance programs, 

but particularly programs other than those described as meeting 

basic human health needs, and for that reason an extended congressional consultation period is required for such ‘‘other’’ assistance. 


jcorcoran on PROD1PC62 with HEARING
17 

For this subsection, the term ‘appropriate congressional committees’ means the Committee on International Relations and the 

Committee on Appropriations of the House of Representatives, and 

the Committee on Foreign Relations and the Committee on Appropriations of the Senate. 

Subsection (b) of section 3 provides for several enhanced procedures to oversee the operations under new section 620L. 

(1) For each of the fiscal years 2007 and 2008, the Secretary of 

State shall certify to the appropriate congressional committees not 

later than 30 days prior to the initial obligation of amounts for assistance to nongovernmental organizations for the West Bank or 

Gaza under the Foreign Assistance Act of 1961 that procedures 

have been established to ensure that the Comptroller General of 

the United States will have access to appropriate United States financial information in order to review the use of such assistance. 

(2) Prior to any obligation of amounts for each fiscal year for assistance to nongovernmental organizations for the West Bank or 

Gaza under the Foreign Assistance Act of 1961 the Secretary of 

State shall take all appropriate steps to ensure that such assistance is not provided to or through any individual or entity that the 

Secretary knows, or has reason to believe, advocates, plans, sponsors, engages in, or has engaged in, terrorist activity. The Secretary shall, as appropriate, establish procedures specifying the 

steps to be taken to carry out this paragraph and shall terminate 

assistance to any individual or entity that the Secretary has determined advocates, plans, sponsors, or engages in terrorist activity. 

(3) No amounts made available for assistance to nongovernmental organizations for the West Bank or Gaza under the Foreign 

Assistance Act of 1961 may be made available for the purpose of 

recognizing or otherwise honoring individuals, or the families of individuals, who commit, or have committed, acts of terrorism. 

(4) The Administrator of the United States Agency for International Development shall ensure that independent audits of all 

contractors and grantees, and significant subcontractors and subgrantees, which receive amounts for assistance to nongovernmental 

organizations for the West Bank or Gaza under the Foreign Assistance Act of 1961 are conducted to ensure, among other things, compliance with this subsection. Of the amounts available for any fiscal year for assistance to nongovernmental organizations for the 

West Bank or Gaza under the Foreign Assistance Act of 1961, up 

to $1,000,000 for each such fiscal year may be used by the Office 

of the Inspector General of the United States Agency for International Development for audits, inspections, and other activities 

in furtherance of the requirements described in the preceding sentence. Such amounts are in addition to amounts otherwise available for such purposes. 

Subsection (c) of section 3 expresses the sense of Congress that 

the President should be guided by the principles and procedures 

described in section 620L of the Foreign Assistance Act, as added 

by subsection (a) of section 3, in providing direct assistance to the 

Palestinian Authority under any provision of law other than the 

Foreign Assistance Act of 1961. Although new section 620L does 

not purport to govern assistance provided outside the Foreign Assistance Act, it is important that the spirit of section 620L be followed insofar as possible in the provision of other assistance. 


jcorcoran on PROD1PC62 with HEARING
18 

Section 4 (a) provides that not later than 60 days after the date 

of the enactment of this Act, the President shall (A) conduct an 

audit of the functions of the United Nations Division for Palestinian Rights, the Committee on the Exercise of the Inalienable 

Rights of the Palestinian People, the United Nations Special Coordinator for the Middle East Peace Process and Personal Representative to the Palestine Liberation Organization and the Palestinian 

Authority, the NGO Network on the Question of Palestine, the Special Committee to Investigate Israeli Practices Affecting the 

Human Rights of the Palestinian People and Other Arabs of the 

Occupied Territories, and any other entity the Secretary determines results in duplicative efforts or funding or fails to ensure 

balance in the approach to Israeli-Palestinian issues; and (B) transmit to the appropriate congressional committees a report containing recommendations for the elimination of such entities and 

efforts that are duplicative or fail to ensure balance in the approach of the United Nations to Israeli-Palestinian issues. 

Section 4(b)(1) provides that the United States Permanent Representative to the United Nations shall use the voice, vote, and influence of the United States at the United Nations to seek the implementation of the recommendations contained in the report required under subsection (a). 

Section 4(b)(2) provides that until such recommendations have 

been implemented, the Secretary of State is authorized to withhold 

from United States contributions to the regular assessed budget of 

the United Nations for a biennial period amounts that are proportional to the percentage of such budget that are expended for such 

entities. This language is not mandatory. 

Section 4(c) provides that the Comptroller General shall conduct 

an audit of the status of the implementation of the recommendations contained in the report required under subsection (a)(1)(B). 

Section 4(d) provides that the Secretary of State is authorized to 

withhold from United States contributions to the regular assessed 

budget of the United Nations for a biennial period amounts that 

are proportional to the percentage of such budget that are expended for any United Nations affiliated or specialized agency that 

provides assistance directly to the Palestinian Authority during 

any period for which a certification described in section 620K(b) of 

the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of 

this Act) is not in effect with respect to the Palestinian Authority. 

This language is not mandatory. 

Section 5 expresses the sense of Congress that, during any period 

for which a certification described in section 620K(b) of the Foreign 

Assistance Act of 1961 (as added by this Act) is not in effect with 

respect to the Palestinian Authority, the territory controlled by the 

Palestinian Authority should be deemed to be in use as a sanctuary 

for terrorists or terrorist organizations for purposes of section 

6(j)(5) of the Export Administration Act of 1979 (50 U.S.C. App. 

2405(j)(5)) and section 140 of the Foreign Relations Authorization 

Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f). This language 

is not mandatory. 

Section 6 provides, in its subsection (a), a general rule that a visa 

shall not be issued to any alien who is an official of, affiliated with, 

or serving as a representative of the Palestinian Authority during 

any period for which a certification described in section 620K(b) of 


jcorcoran on PROD1PC62 with HEARING
19 

the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of 

this Act) is not in effect with respect to the Palestinian Authority. 

Under subsection (b), the general rule will not apply if the President or the President’s designee determines and certifies to the appropriate congressional committees, on a case-by-case basis, that 

the issuance of a visa to an alien described in such subsection is 

important to the national security interests of the United States, 

or to the President of the Palestinian Authority and such President’s personal assistants or representatives during the time such 

President is not determined to be a member of Hamas or any other 

foreign terrorist organization. The general rule of subsection (a) 

also does not apply in the case of visas granted in connection with 

obligations of the United States under the United Nations Headquarters Agreement Act. 

Section 7 requires the President to restrict the travel of officials 

and representatives of the Palestinian Authority and of the Palestine Liberation Organization who are stationed at the United Nations in New York City to a 25-mile radius of the United Nations 

headquarters building during any period for which a certification 

described in section 620K(b) of the Foreign Assistance Act of 1961 

(as added by section 2(b)(2) of this Act) is not in effect with respect 

to the Palestinian Authority. 

The Committee is aware that the representatives stationed at 

the United Nations are appointed as representatives of the Palestine Liberation Organization (PLO), not the Palestinian Authority (PA). The legislation specifies ‘‘of the Palestinian Authority and 

of the Palestine Liberation Organization’’ because of past efforts by 

the PA to assume greater control over Palestinian representative 

offices abroad, which creates uncertainty as to which of these entities, the PA or the PLO, will have control over these representative 

offices in the future. 

Section 8 (a) provides the general rule that it shall be unlawful 

to establish or maintain an office, headquarters, premises, or other 

facilities or establishments within the jurisdiction of the United 

States at the behest or direction of, or with funds provided by, the 

Palestinian Authority or the Palestine Liberation Organization during any period for which a certification described in section 620K(b) 

of the Foreign Assistance Act (as added by section 2(b)(2) of this 

Act) is not in effect with respect to the Palestinian Authority. 

The Committee is aware that the representatives stationed at 

the United Nations are appointed as representatives of the Palestine Liberation Organization (PLO), not the Palestinian Authority (PA). The legislation specifies ‘‘the Palestinian Authority or the 

Palestine Liberation Organization’’ because of past efforts by the 

PA to assume greater control over Palestinian representative offices abroad, which creates uncertainty as to which of these entities, the PA or the PLO, will have control over these representative 

offices in the future. 

Section 8(b) provides that the Attorney General shall take the 

necessary steps and institute the necessary legal action to effectuate the policies and provisions of subsection (a), and that any district court of the United States for a district in which a violation 

of subsection (a) occurs shall have authority, upon petition of relief 

by the Attorney General, to grant injunctive and such other equiVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
20 

table relief as it shall deem necessary to enforce the provisions of 

subsection (a) of this section 8. 

Section 8(c)(1) provides that the President may waive the application of subsection (a) for a period of 180 days if the President determines and certifies to the appropriate congressional committees 

that such waiver is vital to the national security interests of the 

United States and provides an explanation of how the failure to 

waive the application of subsection (a) would be inconsistent with 

the vital national security interests of the United States. 

Section 8(c)(2) permits the President to renew the waiver described in paragraph (1) of subsection 8(c) for successive 180–day 

periods if the President makes the determination and certification 

described in such paragraph for each such period. 

Section 9(a) provides the general rule that it shall be the policy 

of the United States that the United States Executive Director at 

each international financial institution shall use the voice, vote, 

and influence of the United States to prohibit assistance to the Palestinian Authority during any period for which a certification described in section 620K(b) of the Foreign Assistance of 1961 (as 

added by section 2(b)(2) of this Act) is not in effect with respect to 

the Palestinian Authority. This is not a mandatory provision. 

Section 9(b) defines the term ‘‘international financial institution’’ as having the meaning given the term in section 1701(c)(2) of the 

International Financial Institutions Act. 

Section 10 provides that it shall be the policy of the United 

States that no officer or employee of the United States Government 

shall negotiate or have substantive contacts with members or official representatives of Hamas, Palestinian Islamic Jihad, the Popular Front for the Liberation of Palestine, al-Aqsa Martyrs Brigade, 

or any other Palestinian terrorist organization, unless and until 

such organization (1) recognizes Israel’s right to exist; (2) renounces the use of terrorism; (3) dismantles the infrastructure necessary to carry out terrorist acts, including the disarming of militias and the elimination of all instruments of terror; and (4) recognizes and accepts all previous agreements and understandings between the State of Israel and the Palestine Liberation Organization 

and the Palestinian Authority. This is a non-mandatory policy provision; but the Committee expects that it will be adhered to by the 

Administration. 

Section 11 provides definitions for the bill. The term ‘‘appropriate 

congressional committees’’ means the Committee on International 

Relations and the Committee on Appropriations of the House of 

Representatives, and the Committee on Foreign Relations and the 

Committee on Appropriations of the Senate. The term ‘‘Palestinian 

Authority’’ has the meaning given the term in section 620K(e)(2) of 

the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of 

this Act). 

NEW ADVISORY COMMITTEES

H.R. 4681 does not establish or authorize any new advisory committees. 

CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 4681 does not apply to the legislative branch. 


jcorcoran on PROD1PC62 with HEARING
21 

FEDERAL MANDATES

H.R. 4681 provides no Federal mandates. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

FOREIGN ASSISTANCE ACT OF 1961 

* * * * * * * 

PART III 

CHAPTER 1—GENERAL PROVISIONS

* * * * * * * 

SEC. ø620G¿ 620J. DEPLETED URANIUM AMMUNITION. 

(a) * * * 

* * * * * * * 

SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY. 

(a) LIMITATION.—Except as provided in subsection (e), assistance 

may be provided under this Act to the Palestinian Authority only 

during a period for which a certification described in subsection (b) 

is in effect. 

(b) CERTIFICATION.—A certification described in this subsection is 

a certification transmitted by the President to Congress that contains a determination of the President that— (1) no ministry, agency, or instrumentality of the Palestinian 

Authority is controlled by a foreign terrorist organization and 

no member of a foreign terrorist organization serves in a senior 

policy making position in a ministry, agency, or instrumentality 

of the Palestinian Authority; 

(2) the Palestinian Authority has—

(A) publicly acknowledged Israel’s right to exist as a Jewish state; and 

(B) recommitted itself and is adhering to all previous 

agreements and understandings by the Palestine Liberation 

Organization and the Palestinian Authority with the Government of the United States, the Government of Israel, 

and the international community, including agreements 

and understandings pursuant to the Performance-Based 

Roadmap to a Permanent Two-State Solution to the IsraeliPalestinian Conflict (commonly referred to as the ‘Roadmap’); and 

(3) the Palestinian Authority has taken effective steps and 

made demonstrable progress toward—

(A) completing the process of purging from its security 

services individuals with ties to terrorism; 

(B) dismantling all terrorist infrastructure, confiscating 

unauthorized weapons, arresting and bringing terrorists to 


jcorcoran on PROD1PC62 with HEARING
22 

justice, destroying unauthorized arms factories, thwarting 

and preempting terrorist attacks, and fully cooperating 

with Israel’s security services; 

(C) halting all anti-Israel incitement in Palestinian Authority-controlled electronic and print media and in 

schools, mosques, and other institutions it controls, and replacing these materials, including textbooks, with materials 

that promote tolerance, peace, and coexistence with Israel; 

(D) ensuring democracy, the rule of law, and an independent judiciary, and adopting other reforms such as ensuring transparent and accountable governance; and 

(E) ensuring the financial transparency and accountability of all government ministries and operations. 

(c) RECERTIFICATIONS.—Not later than 90 days after the date on 

which the President transmits to Congress an initial certification 

under subsection (b), and every six months thereafter—

(1) the President shall transmit to Congress a recertification 

that the requirements contained in subsection (b) are continuing 

to be met; or 

(2) if the President is unable to make such a recertification, 

the President shall transmit to Congress a report that contains 

the reasons therefor. 

(d) CONGRESSIONAL NOTIFICATION.—Assistance made available 

under this Act to the Palestinian Authority may not be provided 

until 15 days after the date on which the President has provided notice thereof to the Committee on International Relations and the 

Committee on Appropriations of the House of Representatives and 

to the Committee on Foreign Relations and the Committee on Appropriations of the Senate in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of this 

Act. 

(e) EXCEPTIONS.—

(1) IN GENERAL.—Subsection (a) shall not apply with respect 

to the following: 

(A) ASSISTANCE TO INDEPENDENT ELECTIONS COMMIS- SIONS.—Assistance to any Palestinian independent election 

commission if the President transmits to Congress a certification that contains a determination of the President that— (i) no member of such commission is a member of, affiliated with, or appointed by a foreign terrorist organization; and 

(ii) each member of such commission is independent 

of the influence of any political party or movement. 

(B) ASSISTANCE TO SUPPORT THE MIDDLE EAST PEACE

PROCESS.—Assistance to the Office of the President of the 

Palestinian Authority for non-security expenses directly related to facilitating a peaceful resolution of the Israeli-Palestinian conflict or for the personal security detail of the 

President of the Palestinian Authority if the President 

transmits to Congress a certification that contains a determination of the President that— (i) such assistance is critical to facilitating a peaceful 

resolution of the Israeli-Palestinian conflict; 

(ii) the President of the Palestinian Authority is not 

a member of or affiliated with a foreign terrorist orgaVerDate Aug 31 2005 05:14 May 12, 2006 Jkt 049006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6603 E:\HR\OC\HR462P1.XXX HR462P1

jcorcoran on PROD1PC62 with HEARING
23 

nization and has rejected the use of terrorism to resolve 

the Israeli-Palestinian conflict; 

(iii) such assistance will not be used to provide funds 

to any individual who is a member of or affiliated with 

a foreign terrorist organization or who has not rejected 

the use of terrorism to resolve the Israeli-Palestinian 

conflict; and 

(iv) such assistance will not be retransferred to any 

other entity within or outside of the Palestinian Authority except as payment for legal goods or services 

rendered. 

(2) ADDITIONAL REQUIREMENTS.—Assistance described in 

paragraph (1) may be provided only if the President— (A) determines that the provision of such assistance is 

important to the national security interests of the United 

States; and 

(B) not less than 30 days prior to the obligation of 

amounts for the provision of such assistance— (i) consults with the appropriate congressional committees regarding the specific programs, projects, and 

activities to be carried out using such assistance; and 

(ii) submits to the appropriate congressional committees a written memorandum that contains the determination of the President under subparagraph (A). 

(3) DEFINITION.—In this subsection, the term ‘‘appropriate 

congressional committees’’ means—

(A) the Committee on International Relations and the 

Committee on Appropriations of the House of Representatives; and 

(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. 

(f) DEFINITIONS.—In this section: 

(1) FOREIGN TERRORIST ORGANIZATION.—The term ‘‘foreign 

terrorist organization’’ means an organization designated as a 

foreign terrorist organization by the Secretary of State in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)). 

(2) PALESTINIAN AUTHORITY.—The term ‘‘Palestinian Authority’’ means the interim Palestinian administrative organization 

that governs part of the West Bank and all of the Gaza Strip 

(or any successor Palestinian governing entity), including the 

Palestinian Legislative Council. 

SEC. 620L. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND 

GAZA. 

(a) LIMITATION.—Except as provided in subsection (d), assistance 

may be provided under this Act to nongovernmental organizations 

for the West Bank and Gaza only during a period for which a certification described in section 620K(b) of this Act is in effect with 

respect to the Palestinian Authority. 

(b) MARKING REQUIREMENT.—Assistance provided under this Act 

to nongovernmental organizations for the West Bank and Gaza 

shall be marked as assistance from the Government of the United 

States unless the Secretary of State or the Administrator of the 

United States Agency for International Development determines that 

such marking will endanger the lives or safety of persons delivering 


jcorcoran on PROD1PC62 with HEARING
24 

or receiving such assistance or would have a material adverse effect 

on the implementation of such assistance. 

(c) CONGRESSIONAL NOTIFICATION.—Assistance made available 

under this Act to nongovernmental organizations for the West Bank 

and Gaza may not be provided until 15 days after the date on 

which the President has provided notice thereof to the Committee on 

International Relations and the Committee on Appropriations of the 

House of Representatives and to the Committee on Foreign Relations 

and the Committee on Appropriations of the Senate in accordance 

with the procedures applicable to reprogramming notifications 

under section 634A(a) of this Act. 

(d) EXCEPTIONS.—Subsection (a) shall not apply with respect to 

the following: 

(1) ASSISTANCE TO MEET BASIC HUMAN HEALTH NEEDS.—The 

provision of food, water, medicine, sanitation services, or other 

assistance to directly meet basic human health needs. 

(2) OTHER TYPES OF ASSISTANCE.—The provision of any other 

type of assistance if the President—

(A) determines that the provision of such assistance will 

further the national security interests of the United States; 

and 

(B) not less than 25 days prior to the obligation of 

amounts for the provision of such assistance—

(i) consults with the appropriate congressional committees regarding the specific programs, projects, and 

activities to be carried out using such assistance; and 

(ii) submits to the appropriate congressional committees a written memorandum that contains the determination of the President under subparagraph (A) and 

an explanation of how failure to provide the proposed 

assistance would be inconsistent with furthering the 

national security interests of the United States. 

(3) DEFINITION.—In this subsection, the term ‘‘appropriate 

congressional committees’’ means— (A) the Committee on International Relations and the 

Committee on Appropriations of the House of Representatives; and 

(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. 

* * * * * * * 


jcorcoran on PROD1PC62 with HEARING
(25) 

ADDITIONAL VIEWS OF HON. EARL BLUMENAUER 

All of us agree with current law that the United States cannot 

provide assistance to foreign terrorist organizations or governments 

controlled by terrorists, as well as the Quartet’s demands that 

Hamas recognize Israel’s right to exist, forswear violence, and accept previous Israeli-Palestinian agreements. However, this bill 

goes much further by permanently prohibiting all direct assistance 

to the Palestinian Authority and almost all non-governmental assistance to the Palestinian people unless any Palestinian government—Hamas, Fatah or otherwise—meets a series of unlikely allor-nothing conditions. It even restricts aid to Hamas’ opponents, 

limits diplomatic contacts with moderate Palestinian officials and 

insists on conditions that have nothing to do with Hamas’ election 

or achieving the vision of a Palestinian state living side by side 

with Israel in peace. 

Though I know it is not the intent of the authors, this legislation 

risks harming Israel’s security by making the possibility of constructive engagement more difficult and less likely. It ignores the 

possibility of progress with any Palestinian government being made 

in the context of negotiations. By placing permanent restrictions on 

the tools that the United States can use to promote Palestinian reform and Israeli security, this is the wrong answer to a most difficult challenge. 

EARL BLUMENAUER. 

Æ 


jcorcoran on PROD1PC62 with HEARING