109TH CONGRESS 
2D SESSION 
H. R. 4681
AN ACT 
To promote the development of democratic institutions in 
areas under the administrative control of the Palestinian 
Authority, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Palestinian Anti-Ter-
rorism 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 com-
munity to avoid contact with and refrain from finan-
cially 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—
(A) denounces and combats terrorism;
(B) has agreed to and is taking action to 
disarm and dismantle any terrorist agency, net-
work, or facility; 
(C) has agreed to work to eliminate anti-
Israel and anti-Semitic incitement and the com-
memoration 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 gov-
ernance, 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 Pal-
estinian people. 
(b) AMENDMENTS.—Chapter 1 of part III of the For-
eign 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 sec-
tion: 
‘‘SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALES-
TINIAN AUTHORITY. 
‘‘(a) LIMITATION.—Except as provided in subsection 
(e), assistance may be provided under this Act to the Pal-
estinian Authority only during a period for which a certifi-
cation described in subsection (b) is in effect. 
‘‘(b) CERTIFICATION.—A certification described in 
this subsection is a certification transmitted by the Presi-
dent 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 mak-
ing 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 ‘Road-
map’); and 
‘‘(3) the Palestinian Authority has taken effec-
tive 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 infrastruc-
ture, confiscating unauthorized weapons, arrest-
ing and bringing terrorists to justice, destroying 
unauthorized arms factories, thwarting and pre-
empting 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 ma-
terials, 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 Con-
gress 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 Con-
gress 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 Com-
mittee 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 proce-
dures 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 ELEC-
TIONS COMMISSIONS.—Assistance to any Pales-
tinian 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 po-
litical party or movement. 
‘‘(B) ASSISTANCE TO SUPPORT THE MID-
DLE EAST PEACE PROCESS.—Assistance to the 
Office of the President of the Palestinian Au-
thority for non-security expenses directly re-
lated to facilitating a peaceful resolution of the 
Israeli-Palestinian conflict or for the personal 
security detail of the President of the Pales-
tinian Authority if the President transmits to 
Congress a certification that contains a deter-
mination of the President that—
‘‘(i) such assistance is critical to fa-
cilitating 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 re-
jected the use of terrorism to resolve the 
Israeli-Palestinian conflict; and 
‘‘(iv) such assistance will not be re-
transferred to any other entity within or 
outside of the Palestinian Authority except 
as payment for legal goods or services ren-
dered.
‘‘(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 ob-
ligation of amounts for the provision of such as-
sistance—
‘‘(i) consults with the appropriate con-
gressional committees regarding the spe-
cific programs, projects, and activities to 
be carried out using such assistance; and 
‘‘(ii) submits to the appropriate con-
gressional committees a written memo-
randum 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 Rela-
tions 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 organi-
zation 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 Pales-
tinian 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.—Sec-
tion 620K of the Foreign Assistance Act of 1961, as 
added by subsection (b), applies with respect to unex-
pended 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 relevant depart-
ments 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 Con-
gress 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 pro-
viding 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 For-
eign 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 non-
governmental 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 mark-
ing will endanger the lives or safety of persons delivering 
or receiving such assistance or would have a material ad-
verse effect on the implementation of such assistance. 
‘‘(c) CONGRESSIONAL
NOTIFICATION.—Assistance 
made available under this Act to nongovernmental organi-
zations 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 For-
eign 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 pro-
vision of any other type of assistance if the Presi-
dent—
‘‘(A) determines that the provision of such 
assistance will further the national security in-
terests of the United States; and 
‘‘(B) not less than 25 days prior to the ob-
ligation of amounts for the provision of such as-
sistance—
‘‘(i) consults with the appropriate con-
gressional committees regarding the spe-
cific programs, projects, and activities to 
be carried out using such assistance; and 
‘‘(ii) submits to the appropriate con-
gressional committees a written memo-
randum that contains the determination of 
the President under subparagraph (A) and 
an explanation of how failure to provide 
the proposed assistance would be incon-
sistent with furthering the national secu-
rity interests of the United States.
‘‘(3) DEFINITION.—In this subsection, the term 
‘appropriate congressional committees’ means—
‘‘(A) the Committee on International Rela-
tions 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 organi-
zations for the West Bank or Gaza under the For-
eign Assistance Act of 1961 that procedures have 
been established to ensure that the Comptroller Gen-
eral of the United States will have access to appro-
priate 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 organi-
zations for the West Bank or Gaza under the For-
eign 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 indi-
vidual or entity that the Secretary knows, or has 
reason to believe, advocates, plans, sponsors, en-
gages in, or has engaged in, terrorist activity. The 
Secretary shall, as appropriate, establish procedures 
specifying the steps to be taken in carrying out this 
paragraph and shall terminate assistance to any in-
dividual 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 avail-
able for the purpose of recognizing or otherwise hon-
oring 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 De-
velopment shall ensure that independent audits 
of all contractors and grantees, and significant 
subcontractors and subgrantees, that receive 
amounts for assistance to nongovernmental or-
ganizations for the West Bank or Gaza under
the Foreign Assistance Act of 1961 are con-
ducted to ensure, among other things, compli-
ance with this subsection. 
(B) AUDITS BY INSPECTOR GENERAL OF 
USAID.—Of the amounts available for any fiscal 
year for assistance to nongovernmental organi-
zations 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 De-
velopment for audits, inspections, and other ac-
tivities in furtherance of the requirements of 
subparagraph (A). Such amounts are in addi-
tion to amounts otherwise available for such 
purposes. 
(c) SENSE OF CONGRESS.—It is the sense of Con-
gress 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 pro-
viding 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 congres-
sional committees a report containing rec-
ommendations for the elimination of such enti-
ties 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 re-
ferred to in paragraph (1) are the following: 
(A) The United Nations Division for Pales-
tinian Rights. 
(B) The Committee on the Exercise of the 
Inalienable Rights of the Palestinian People. 
(C) The United Nations Special Coordi-
nator for the Middle East Peace Process and 
Personal Representative to the Palestine Lib-
eration Organization and the Palestinian Au-
thority. 
(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 deter-
mines 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 Perma-
nent 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 re-
quired under subsection (a)(1)(B). 
(2) WITHHOLDING
OF
FUNDS.—Until the 
President certifies to the Congress that such rec-
ommendations have been implemented, the Secretary 
of State should withhold from United States con-
tributions 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.