H. R. 2055—434 
enable Israel and an independent Palestinian state to exist 
within the context of full and normal relationships, which 
should include— 
(A) termination of all claims or states of belligerency; 
(B) respect for and acknowledgment of the sovereignty, 
territorial integrity, and political independence of every 
state in the area through measures including the establish-
ment of demilitarized zones; 
(C) their right to live in peace within secure and recog-
nized boundaries free from threats or acts of force; 
(D) freedom of navigation through international water-
ways in the area; and 
(E) a framework for achieving a just settlement of 
the refugee problem. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the governing entity should enact a constitution assuring the rule 
of law, an independent judiciary, and respect for human rights 
for its citizens, and should enact other laws and regulations 
assuring transparent and accountable governance. 
(c) WAIVER.—The President may waive subsection (a) if the 
President determines that it is important to the national security 
interests of the United States to do so. 
(d) EXEMPTION.—The restriction in subsection (a) shall not 
apply to assistance intended to help reform the Palestinian 
Authority and affiliated institutions, or the governing entity, in 
order to help meet the requirements of subsection (a), consistent 
with the provisions of section 7040 of this Act (‘‘Limitation on 
Assistance for the Palestinian Authority’’). 
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY 
SEC. 7037. None of the funds appropriated under titles II 
through VI of this Act may be obligated or expended to create 
in any part of Jerusalem a new office of any department or agency 
of the United States Government for the purpose of conducting 
official United States Government business with the Palestinian 
Authority over Gaza and Jericho or any successor Palestinian gov-
erning entity provided for in the Israel-PLO Declaration of Prin-
ciples: Provided, That this restriction shall not apply to the acquisi-
tion of additional space for the existing Consulate General in Jeru-
salem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided 
for in the Israel-PLO Declaration of Principles, for the purpose 
of conducting official United States Government business with such 
authority should continue to take place in locations other than 
Jerusalem: Provided further, That as has been true in the past, 
officers and employees of the United States Government may con-
tinue to meet in Jerusalem on other subjects with Palestinians 
(including those who now occupy positions in the Palestinian 
Authority), have social contacts, and have incidental discussions. 
PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING 
CORPORATION 
SEC. 7038. None of the funds appropriated or otherwise made 
available by this Act may be used to provide equipment, technical
H. R. 2055—435 
support, consulting services, or any other form of assistance to 
the Palestinian Broadcasting Corporation. 
ASSISTANCE FOR THE WEST BANK AND GAZA 
SEC. 7039. (a) OVERSIGHT.—For fiscal year 2012, 30 days prior 
to the initial obligation of funds for the bilateral West Bank and 
Gaza Program, the Secretary of State shall certify to the Commit-
tees on Appropriations that procedures have been established to 
assure the Comptroller General of the United States will have 
access to appropriate United States financial information in order 
to review the uses of United States assistance for the Program 
funded under the heading ‘‘Economic Support Fund’’ for the West 
Bank and Gaza. 
(b) VETTING.—Prior to the obligation of funds appropriated 
by this Act under the heading ‘‘Economic Support Fund’’ for assist-
ance for the West Bank and Gaza, the Secretary of State shall 
take all appropriate steps to ensure that such assistance is not 
provided to or through any individual, private or government entity, 
or educational institution that the Secretary knows or has reason 
to believe advocates, plans, sponsors, engages in, or has engaged 
in, terrorist activity nor, with respect to private entities or edu-
cational institutions, those that have as a principal officer of the 
entity’s governing board or governing board of trustees any indi-
vidual that has been determined to be involved in, or advocating 
terrorist activity or determined to be a member of a designated 
foreign terrorist organization: Provided, That the Secretary of State 
shall, as appropriate, establish procedures specifying the steps to 
be taken in carrying out this subsection and shall terminate assist-
ance to any individual, entity, or educational institution which 
the Secretary has determined to be involved in or advocating ter-
rorist activity. 
(c) PROHIBITION.— 
(1) None of the funds appropriated under titles III through 
VI of this Act for assistance under the West Bank and Gaza 
Program may be made available for the purpose of recognizing 
or otherwise honoring individuals who commit, or have com-
mitted acts of terrorism. 
(2) Notwithstanding any other provision of law, none of 
the funds made available by this or prior appropriations Acts, 
including funds made available by transfer, may be made avail-
able for obligation for security assistance for the West Bank 
and Gaza until the Secretary of State reports to the Committees 
on Appropriations on the benchmarks that have been estab-
lished for security assistance for the West Bank and Gaza 
and reports on the extent of Palestinian compliance with such 
benchmarks. 
(d) AUDITS.— 
(1) The Administrator of the United States Agency for 
International Development shall ensure that Federal or non- 
Federal audits of all contractors and grantees, and significant 
subcontractors and sub-grantees, under the West Bank and 
Gaza Program, are conducted at least on an annual basis 
to ensure, among other things, compliance with this section. 
(2) Of the funds appropriated by this Act up to $500,000 
may be used by the Office of Inspector General of the United
H. R. 2055—436 
States Agency for International Development for audits, inspec-
tions, and other activities in furtherance of the requirements 
of this subsection: Provided, That such funds are in addition 
to funds otherwise available for such purposes. 
(e) Subsequent to the certification specified in subsection (a), 
the Comptroller General of the United States shall conduct an 
audit and an investigation of the treatment, handling, and uses 
of all funds for the bilateral West Bank and Gaza Program, 
including all funds provided as cash transfer assistance, in fiscal 
year 2012 under the heading ‘‘Economic Support Fund’’, and such 
audit shall address— 
(1) the extent to which such Program complies with the 
requirements of subsections (b) and (c); and 
(2) an examination of all programs, projects, and activities 
carried out under such Program, including both obligations 
and expenditures. 
(f) Funds made available in this Act for West Bank and Gaza 
shall be subject to the regular notification procedures of the 
Committees on Appropriations. 
(g) Not later than 180 days after enactment of this Act, the 
Secretary of State shall submit a report to the Committees on 
Appropriations updating the report contained in section 2106 of 
chapter 2 of title II of Public Law 109–13. 
LIMITATION ON ASSISTANCE FOR THE PALESTINIAN AUTHORITY 
SEC. 7040. (a) PROHIBITION
OF FUNDS.—None of the funds 
appropriated by this Act to carry out the provisions of chapter 
4 of part II of the Foreign Assistance Act of 1961 may be obligated 
or expended with respect to providing funds to the Palestinian 
Authority. 
(b) WAIVER.—The prohibition included in subsection (a) shall 
not apply if the President certifies in writing to the Speaker of 
the House of Representatives, the President pro tempore of the 
Senate, and the Committees on Appropriations that waiving such 
prohibition is important to the national security interests of the 
United States. 
(c) PERIOD OF APPLICATION OF WAIVER.—Any waiver pursuant 
to subsection (b) shall be effective for no more than a period of 
6 months at a time and shall not apply beyond 12 months after 
the enactment of this Act. 
(d) REPORT.—Whenever the waiver authority pursuant to sub-
section (b) is exercised, the President shall submit a report to 
the Committees on Appropriations detailing the justification for 
the waiver, the purposes for which the funds will be spent, and 
the accounting procedures in place to ensure that the funds are 
properly disbursed: Provided, That the report shall also detail the 
steps the Palestinian Authority has taken to arrest terrorists, con-
fiscate weapons and dismantle the terrorist infrastructure. 
(e) CERTIFICATION.—If the President exercises the waiver 
authority under subsection (b), the Secretary of State must certify 
and report to the Committees on Appropriations prior to the obliga-
tion of funds that the Palestinian Authority has established a 
single treasury account for all Palestinian Authority financing and 
all financing mechanisms flow through this account, no parallel 
financing mechanisms exist outside of the Palestinian Authority
H. R. 2055—437 
treasury account, and there is a single comprehensive civil service 
roster and payroll. 
(f) PROHIBITION
TO HAMAS
AND
THE PALESTINE LIBERATION 
ORGANIZATION.— 
(1) None of the funds appropriated in titles III through 
VI of this Act may be obligated for salaries of personnel of 
the Palestinian Authority located in Gaza or may be obligated 
or expended for assistance to Hamas or any entity effectively 
controlled by Hamas, any power-sharing government of which 
Hamas is a member, or that results from an agreement with 
Hamas and over which Hamas exercises undue influence. 
(2) Notwithstanding the limitation of subsection (1), assist-
ance may be provided to a power-sharing government only 
if the President certifies and reports to the Committees on 
Appropriations that such government, including all of its min-
isters or such equivalent, has publicly accepted and is complying 
with the principles contained in section 620K(b)(1) (A) and 
(B) of the Foreign Assistance Act of 1961, as amended. 
(3) The President may exercise the authority in section 
620K(e) of the Foreign Assistance Act as added by the Pales-
tinian Anti-Terrorism Act of 2006 (Public Law 109–446) with 
respect to this subsection. 
(4) Whenever the certification pursuant to paragraph (2) 
is exercised, the Secretary of State shall submit a report to 
the Committees on Appropriations within 120 days of the cer-
tification and every quarter thereafter on whether such govern-
ment, including all of its ministers or such equivalent are 
continuing to comply with the principles contained in section 
620K(b)(1) (A) and (B) of the Foreign Assistance Act of 1961, 
as amended: Provided, That the report shall also detail the 
amount, purposes and delivery mechanisms for any assistance 
provided pursuant to the abovementioned certification and a 
full accounting of any direct support of such government. 
(5) None of the funds appropriated under titles III through 
VI of this Act may be obligated for assistance for the Palestine 
Liberation Organization. 
NEAR EAST 
SEC. 7041. (a) EGYPT.— 
(1)(A) None of the funds appropriated under titles III and 
IV of this Act and in prior Acts making appropriations for 
the Department of State, foreign operations, and related pro-
grams may be made available for assistance for the central 
Government of Egypt unless the Secretary of State certifies 
to the Committees on Appropriations that such government 
is meeting its obligations under the 1979 Egypt-Israel Peace 
Treaty. 
(B) Prior to the obligation of funds appropriated by this 
Act under the heading ‘‘Foreign Military Financing Program’’, 
the Secretary of State shall certify to the Committees on Appro-
priations that the Government of Egypt is supporting the 
transition to civilian government including holding free and 
fair elections; implementing policies to protect freedom of 
expression, association, and religion, and due process of law. 
(C) The Secretary of State may waive the requirements 
of paragraphs (A) and (B) if the Secretary determines and