I 
116TH CONGRESS 
1ST SESSION H. R. 3104 
To establish the Partnership Fund for Peace to promote joint economic 
development and finance ventures between Palestinian entrepreneurs and 
companies and those in the United States and Israel to improve economic 
cooperation and people-to-people peacebuilding programs, and to further 
shared community building, peaceful coexistence, dialogue, and reconcili-
ation between Israelis and Palestinians. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 5, 2019 
Mrs. LOWEY (for herself and Mr. FORTENBERRY) introduced the following 
bill; which was referred to the Committee on Foreign Affairs 
A BILL 
To establish the Partnership Fund for Peace to promote 
joint economic development and finance ventures between 
Palestinian entrepreneurs and companies and those in 
the United States and Israel to improve economic co-
operation and people-to-people peacebuilding programs, 
and to further shared community building, peaceful coex-
istence, dialogue, and reconciliation between Israelis and 
Palestinians. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Partnership Fund for 
Peace Act of 2019’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Economic development in conflict settings 
has been shown to support stabilization by empow-
ering entrepreneurs, growing the middle class, and 
mitigating unemployment. 
(2) In 2018, unemployment in the Palestinian 
territories was 32.4 percent, reaching 53.7 percent 
in Gaza and 18 percent in the West Bank. GDP 
growth in the Palestinian territories declined from 
2.7 percent in 2017 to 2 percent in 2018, and it is 
projected to further decline to between 1.7 and 1.9 
percent in 2019 and 2020. 
(3) Increased economic activity and projects to 
improve the quality and conditions of life for the 
Palestinians will help create a viable Palestinian 
economy. 
(4) Although economic development is an im-
portant tool for stabilizing conflict-prone settings 
and establishing connections between communities, 
economic development by itself will not lead to last-
ing peace. People-to-people peacebuilding programs 
further advance reconciliation efforts by promoting 
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greater understanding, mutual trust, and coopera-
tion between communities. 
(5) While the United States and its inter-
national allies continue to support diplomatic and 
political negotiations between the representatives of 
the parties to the Israeli-Palestinian conflict, such 
efforts require broad popular support among the 
people on the ground to succeed. 
(6) Achieving sustainable, high-level agreements 
for lasting peace in the Middle East must come 
through, and with the support of, the people who 
live there. 
(7) Economic initiatives and people-to-people 
peacebuilding programs can help millions of ordinary 
Israelis and Palestinians affected by the ongoing 
conflict in the Middle East. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) building a viable Palestinian economy is 
central to the effort to preserve the possibility of a 
2-state solution; 
(2) strengthening engagement between the Pal-
estinian territories, the United States and Israel in 
the areas of economic development and people-to- 
people peacebuilding programs will— 
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(A) increase the bonds of friendship and 
understanding between the people living in the 
Palestinian territories and the people of the 
United States and Israel; and 
(B) advance the state of research and de-
velopment in multiple sectors to the benefit of 
all parties; 
(3) cooperation between the business sectors of 
the Palestinian territories, the United States and 
Israel will benefit the Palestinian, American, and 
Israeli people and should be encouraged; and 
(4) United States and international support for 
grassroots, people-to-people efforts aimed at shared 
reconciliation and fostering tolerance can help 
counter extremist propaganda and the growing issue 
of incitement. 
SEC. 4. PARTNERSHIP FUND FOR PEACE. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—The Administrator of the 
United States Agency for International Develop-
ment, in consultation with the Secretary of State 
and the Secretary of the Treasury, shall establish 
the Partnership Fund for Peace (referred to in this 
section as the ‘‘Fund’’), which— 
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(A) shall be funded with amounts appro-
priated pursuant to section 5; and 
(B) managed by the Administrator of the 
United States Agency for International Devel-
opment. 
(2) CONTRIBUTIONS.—The Administrator of 
the United States Agency for International Develop-
ment, in consultation with the Secretary of State 
and the Secretary of the Treasury, shall seek addi-
tional contributions for the Fund from the inter-
national community, including countries in the Mid-
dle East and Europe. 
(b) GOVERNANCE.— 
(1) BOARD OF GOVERNORS.— 
(A) APPOINTMENT.—Except as provided in 
subparagraph (D), the Fund shall be governed 
by a Board of Governors, which shall be com-
posed of 5 private, United States citizens or 
legal permanent residents, who shall be ap-
pointed by the Administrator of the United 
States Agency for International Development, 
in consultation with the Secretary of State, the 
Speaker of the House of Representatives, the 
Minority Leader of the House of Representa-
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tives, the Majority Leader of the Senate, and 
the Minority Leader of the Senate. 
(B) QUALIFICATIONS.— 
(i) GENERAL EXPERIENCE.—Members 
of the Board of Governors shall be selected 
from among people who have demonstrated 
experience and expertise in the affairs re-
lated to Israel and the Palestinian terri-
tories. 
(ii) 
BUSINESS
EXPERIENCE.—Not 
fewer than 2 members of the Board of 
Governors shall have— 
(I) demonstrated experience and 
expertise in international and particu-
larly emerging markets investment ac-
tivities, such as private equity or ven-
ture capital investment, banking, fi-
nance, strategic business consulting, 
or entrepreneurial business creation; 
and 
(II) backgrounds in priority busi-
ness sectors of the Palestinian econ-
omy. 
(iii) CONFLICT
MITIGATION
EXPERI-
ENCE.—Not fewer than 2 members of the 
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Board of Governors shall have dem-
onstrated experience and expertise in con-
flict mitigation and people-to-people pro-
grams. 
(iv) USAID OFFICIAL.—The Adminis-
trator of the United States Agency for 
International Development (USAID) shall 
appoint 1 USAID official as a member of 
the Board of Governors. 
(C) RESPONSIBILITIES.—The Board of 
Governors shall— 
(i) determine the amount annually al-
located from the Fund for each Technical 
Board; and 
(ii) approve the Technical Boards’ 
recommendations, as appropriate. 
(D) INTERNATIONAL DONOR SEATS.—With 
the approval of the existing Board of Gov-
ernors, the Administrator may appoint up to 2 
additional members to the Board who shall— 
(i) represent international organiza-
tions or foreign governments that have do-
nated to the Fund; and 
(ii) meet the qualifications set forth in 
subparagraph (B)(i). 
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(E) TECHNICAL BOARDS.— 
(i) ESTABLISHMENT.—The Board of 
Governors shall establish— 
(I) a Business and Economic De-
velopment Technical Board; and 
(II) a People-to-People Programs 
Technical Board. 
(ii) APPOINTMENTS.—Members of the 
technical boards established pursuant to 
clause (i) shall be appointed by the Admin-
istrator of the United States Agency for 
International Development. 
(iii) INVESTMENT
APPROVAL
AND 
RECOMMENDATIONS.—The 
technical 
boards established pursuant to clause (i)— 
(I) may approve investments of 
Fund assets up to $250,000; and 
(II) may recommend investments 
of 
Fund 
assets 
greater 
than 
$250,000, which shall be subject to 
the approval of the Board of Gov-
ernors. 
(iv) STAFF.—Each technical board es-
tablished pursuant to clause (i) shall con-
sist of a Secretariat, which shall be staffed 
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by individuals with demonstrated experi-
ence and expertise relevant to the technical 
board on which they sit. 
(c) PURPOSES.—The purposes of the Fund are— 
(1) to promote the private sector in the Pales-
tinian territories through facilitating and financing 
between small and medium-sized Palestinian entre-
preneurs and companies and those in the United 
States, Israel, and other countries to improve the 
Palestinian private sector through economic coopera-
tion in research and development; 
(2) to improve the quality of life, stimulate the 
economy, and advance security by creating private 
sector jobs for Palestinians in the Palestinian terri-
tories and furthering the development of a Pales-
tinian middle class; and 
(3) to further shared community building, 
peaceful coexistence, dialogue, and reconciliation be-
tween Israelis and Palestinians by financing people- 
to-people peacebuilding programs. 
(d) USES OF FUNDS.—Amounts deposited into the 
Fund may be used— 
(1) to carry out the purposes set forth in sub-
section (c); and 
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(B) Israeli entrepreneurs or companies 
based in Israel. 
(f) PEOPLE-TO-PEOPLE PARTNERSHIPS.—All people- 
to-people partnerships requesting support from the Fund 
shall include— 
(1) a Palestinian nonprofit organization, an 
Israeli nonprofit organization, or an international 
nonprofit organization that brings Palestinians and 
Israelis together for shared community building, 
peaceful coexistence, dialogue, and reconciliation; or 
(2) nonprofit organizations that further shared 
community building, peaceful coexistence, dialogue, 
and reconciliation between Arab and Jewish citizens 
of Israel. 
(g) ALTERNATIVE FUNDING STREAMS.—The Board 
of Governors should explore initiatives to promote long- 
term financial sustainability of the Fund through revenue 
accrued by successful ventures. 
(h) LIMITATIONS, VETTING, AND OVERSIGHT.— 
(1) LIMITATIONS.—None of the funds made 
available under this Act may be made available for— 
(A) financial assistance to national govern-
ments; 
(B) assistance for any individual or group 
that the Administrator of the United States 
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Agency for International Development, in con-
sultation with the heads of other relevant Fed-
eral agencies, determines to be— 
(i) involved in, or advocating, terrorist 
activity; or 
(ii) a member of a foreign terrorist or-
ganization (as designated pursuant to sec-
tion 219 of the Immigration and Nation-
ality Act (8 U.S.C. 1189)); or 
(C) assistance for the Palestinian Author-
ity, Hamas, or the Palestine Liberation Organi-
zation. 
(2) APPLICABLE
LAWS.—Assistance from the 
Fund shall be subject to all relevant laws relating to 
United States Government assistance, including to 
the Palestinians. 
(3) COMPLIANCE WITH MISSION DIRECTIVES.— 
All expenditures from the Fund shall follow the mis-
sion directives applicable to the West Bank and 
Gaza that have been issued by United States Agency 
for International Development Mission Director or 
Contracting Officer. 
(4) USAID INSPECTOR
GENERAL.—All oper-
ations and expenditures of the Fund shall be subject 
to audits, investigations, and inspections conducted 
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by the Office of the Inspector General at the United 
States Agency for International Development. 
(5) GAO.—All operations and expenditures of 
the Fund shall be subject to assessment by the Gov-
ernment Accountability Office. 
(i) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
the end of the fiscal year during which the Fund is 
established and annually thereafter, the Adminis-
trator of the United States Agency for International 
Development shall submit a written report to the 
Committee on Foreign Relations of the Senate, the 
Committee on Appropriations of the Senate, the 
Committee on Foreign Affairs of the House of Rep-
resentatives, and the Committee on Appropriations 
of the House of Representatives that describes the 
extent to which the Fund, and United States con-
tributions to the Fund, have contributed— 
(A) to promoting and supporting joint eco-
nomic development; 
(B) to integrating the Palestinian economy 
into the international business system; and 
(C) to furthering contact, cooperation, dia-
logue, and reconciliation between Israelis and 
Palestinians. 
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(2) MATTERS TO BE INCLUDED.—Each report 
under paragraph (1) shall include— 
(A) information regarding— 
(i) contributions pledged to, contribu-
tions (including donations from the private 
sector) received by, and projects funded by 
the Fund; and 
(ii) the mechanisms established for 
transparency and accountability in the 
grant making and investment process; 
(B) a description of the Fund’s operations, 
activities, budget, receipts, and expenditures for 
the preceding 12-month period, including an 
audited report of the Fund’s finances, including 
statements of financial position, operations, and 
cash flows, in accordance with generally accept-
ed government auditing standards prescribed by 
the Comptroller General of the United States; 
(C) insights gleaned from improvements to 
the efficacy of people-to-people relationships; 
(D) a description of potential strategies for 
achieving sustainability for civic institutions 
that the Fund creates or supports, including 
novel financing mechanisms; and 
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(E) a description of the process for vetting 
and oversight of entities eligible for support 
from the Fund to ensure compliance with sub-
section (h). 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There is authorized to be appro-
priated $50,000,000 for each of the first 5 fiscal years 
beginning after the date of the enactment of this Act. 
(b) AVAILABILITY.—Amounts appropriated pursuant 
to subsection (a) shall be used for United States contribu-
tions to the Partnership Fund for Peace established pur-
suant to section 4(a). 
Æ 
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