zation 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 ‘Pal-
estinian Authority’ means the interim Palestinian 
administrative organization that governs part of the 
West Bank and all of the Gaza Strip (or any suc-
cessor 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 ob-
ligated for assistance under the Foreign Assistance Act of 
1961 to the Palestinian Authority before the date of the en-
actment 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 Inter-
national Development, and all other relevant departments 
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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 Assist-
ance 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 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 
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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 pro-
vided notice thereof to the Committee on International Rela-
tions and the Committee on Appropriations of the House 
of Representatives and to the Committee on Foreign Rela-
tions and the Committee on Appropriations of the Senate 
in accordance with the procedures applicable to reprogram-
ming 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, medi-
cine, sanitation services, or other assistance to di-
rectly meet basic human health needs. 
‘‘(2) OTHER TYPES OF ASSISTANCE.—The provi-
sion of any other type of assistance if the President— 
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‘‘(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 obli-
gation of amounts for the provision of such as-
sistance— 
‘‘(i) consults with the appropriate con-
gressional committees regarding the specific 
programs, projects, and activities to be car-
ried 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 inconsistent 
with furthering the national security inter-
ests 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 
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‘‘(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 organiza-
tions for the West Bank or Gaza under the Foreign 
Assistance Act of 1961 that procedures have been es-
tablished 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 organiza-
tions 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 assist-
ance is not provided to or through any individual or 
entity that the Secretary knows, or has reason to be-
lieve, advocates, plans, sponsors, engages in, or has 
engaged in, terrorist activity. The Secretary shall, as 
appropriate, establish procedures specifying the steps 
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to be taken in carrying out this paragraph and shall 
terminate assistance to any individual or entity that 
the Secretary has determined advocates, plans, spon-
sors, 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 Develop-
ment shall ensure that independent audits of all 
contractors and grantees, and significant sub-
contractors 
and 
subgrantees, 
that 
receive 
amounts for assistance to nongovernmental orga-
nizations 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 organiza-
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tions for the West Bank or Gaza under the For-
eign 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 Assist-
ance 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 congres-
sional committees a report containing rec-
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ommendations for the elimination of such enti-
ties and efforts that are duplicative or fail to en-
sure balance in the approach of the United Na-
tions to Israeli-Palestinian issues. 
(2) ENTITIES SPECIFIED.—The entities referred 
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 Libera-
tion Organization and the Palestinian Author-
ity. 
(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. 
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(b) IMPLEMENTATION OF RECOMMENDATIONS BY PER-
MANENT 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 rec-
ommendations contained in the report required under 
subsection (a)(1)(B). 
(2) WITHHOLDING OF FUNDS.—Until such rec-
ommendations 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 con-
duct an audit of the status of the implementation of the 
recommendations contained in the report required under 
subsection (a)(1)(B). 
(d) WITHHOLDING OF FUNDS WITH RESPECT TO THE 
PALESTINIAN AUTHORITY.—The Secretary of State is au-
thorized 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 af-
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filiated or specialized agency that provides assistance di-
rectly 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 Au-
thority 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 PALES-
TINIAN 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 
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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 Pales-
tinian 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 na-
tional security interests of the United States; or 
(2) with respect to visas issued in connection 
with United States obligations under the Act of Au-
gust 4, 1947 (61 Stat. 756) (commonly known as the 
‘‘United Nations Headquarters Agreement Act’’). 
SEC. 7. TRAVEL RESTRICTIONS ON OFFICIALS AND REP-
RESENTATIVES OF THE PALESTINIAN AU-
THORITY 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 Pal-
estine 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 pe-
riod for which a certification described in section 620K(b) 
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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 Pales-
tinian Authority. 
SEC. 8. PROHIBITION ON PALESTINIAN AUTHORITY REP-
RESENTATION IN THE UNITED STATES. 
(a) PROHIBITION.—Notwithstanding any other provi-
sion of law, it shall be unlawful to establish or maintain 
an office, headquarters, premises, or other facilities or estab-
lishments 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 Organi-
zation 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 nec-
essary legal action to effectuate the policies and provi-
sions 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 
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other equitable relief as it shall deem necessary to en-
force 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 appro-
priate 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. 
(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 Direc-
tor 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 
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this Act) is not in effect with respect to the Palestinian Au-
thority. 
(b) DEFINITION.—In this section, the term ‘‘inter-
national 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 TER-
ROR ORGANIZATIONS. 
It shall be the policy of the United States that no offi-
cer or employee of the United States Government shall nego-
tiate or have substantive contacts with members or official 
representatives of Hamas, Palestinian Islamic Jihad, the 
Popular Front for the Liberation of Palestine, al-Aqsa Mar-
tyrs Brigade, or any other Palestinian terrorist organiza-
tion, 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 ter-
ror; and 
(4) recognizes and accepts all previous agree-
ments and understandings between the State of Israel 
and the Palestine Liberation Organization and the 
Palestinian Authority. 
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SEC. 11. DEFINITIONS. 
In this Act: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ 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. 
(2) PALESTINIAN AUTHORITY.—The term ‘‘Pales-
tinian 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). 
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 so-
lution to end the conflict between Israel 
and the Palestinians in accordance with 
the Performance-Based Roadmap to a 
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Permanent Two-State Solution to the 
Israeli-Palestinian Conflict (commonly re-
ferred to as the ‘‘Roadmap’’); 
(2) to oppose those organizations, in-
dividuals, and countries that support ter-
rorism and violence; 
(3) to urge members of the inter-
national community to avoid contact 
with and refrain from financially sup-
porting the terrorist organization Hamas 
or a Hamas-controlled Palestinian Au-
thority until Hamas agrees to recognize 
Israel, renounce violence, disarm, and ac-
cept prior agreements, including the 
Roadmap; 
(4) to promote the emergence of a 
democratic Palestinian governing author-
ity that— 
(A) denounces and combats ter-
rorism; 
(B) has agreed to and is taking ac-
tion to disarm and dismantle any ter-
rorist agency, network, or facility; 
(C) has agreed to work to elimi-
nate anti-Israel and anti-Semitic in-
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citement and the commemoration of 
terrorists in Palestinian society; 
(D) has agreed to respect the sov-
ereignty of its neighbors; 
(E) acknowledges, respects, and 
upholds the human rights of all peo-
ple; 
(F) implements the rule of law, 
good 
governance, 
and 
democratic 
practices, including conducting free, 
fair, and transparent elections in 
compliance with international stand-
ards; 
(G) ensures institutional and fi-
nancial transparency and account-
ability; and 
(H) has agreed to recognize the 
State of Israel as an independent, sov-
ereign, 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— 
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(1) by redesignating the second sec-
tion 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 PALES-
TINIAN 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 de-
scribed 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 instru-
mentality of the Palestinian Authority is 
controlled by a foreign terrorist organiza-
tion and no member of a foreign terrorist 
organization serves in a senior policy 
making position in a ministry, agency, or 
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instrumentality of the Palestinian Au-
thority; 
‘‘(2) the Palestinian Authority has— 
‘‘(A) 
publicly 
acknowledged 
Israel’s right to exist as a Jewish 
state; and 
‘‘(B) recommitted itself and is ad-
hering to all previous agreements and 
understandings by the Palestine Lib-
eration Organization and the Pales-
tinian Authority with the Govern-
ment of the United States, the Gov-
ernment of Israel, and the inter-
national community, including agree-
ments and understandings pursuant 
to the Performance-Based Roadmap 
to a Permanent Two-State Solution to 
the Israeli-Palestinian Conflict (com-
monly referred to as the ‘Roadmap’); 
and 
‘‘(3) the Palestinian Authority has 
taken effective steps and made demon-
strable progress toward— 
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‘‘(A) completing the process of 
purging from its security services in-
dividuals with ties to terrorism; 
‘‘(B) dismantling all terrorist in-
frastructure, confiscating unauthor-
ized weapons, arresting and bringing 
terrorists to justice, destroying unau-
thorized arms factories, thwarting 
and preempting terrorist attacks, and 
fully cooperating with Israel’s secu-
rity services; 
‘‘(C) halting all anti-Israel incite-
ment in Palestinian Authority-con-
trolled electronic and print media 
and in schools, mosques, and other 
institutions it controls, and replacing 
these materials, including textbooks, 
with materials that promote toler-
ance, 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 account-
able governance; and 
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‘‘(E) ensuring the financial trans-
parency and accountability of all gov-
ernment 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 re-
quirements 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 con-
tains the reasons therefor. 
‘‘(d) CONGRESSIONAL NOTIFICATION.—Assist-
ance made available under this Act to the Pal-
estinian 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 Represent-
atives and to the Committee on Foreign Rela-
tions and the Committee on Appropriations of 
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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 elec-
tion commission if the President 
transmits to Congress a certification 
that contains a determination of the 
President that— 
‘‘(i) no member of such com-
mission 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.—Assist-
ance to the Office of the President of 
the Palestinian Authority for non-se-
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curity expenses directly related to fa-
cilitating a peaceful resolution of the 
Israeli-Palestinian conflict or for the 
personal security detail of the Presi-
dent of the Palestinian Authority if 
the President transmits to Congress a 
certification that contains a deter-
mination of the President that— 
‘‘(i) such assistance is critical 
to facilitating a peaceful resolu-
tion of the Israeli-Palestinian con-
flict; 
‘‘(ii) the President of the Pal-
estinian Authority is not a mem-
ber of or affiliated with a foreign 
terrorist organization and has re-
jected the use of terrorism to re-
solve the Israeli-Palestinian con-
flict; 
‘‘(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 re-
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solve the Israeli-Palestinian con-
flict; and 
‘‘(iv) such assistance will not 
be retransferred to any other en-
tity within or outside of the Pal-
estinian Authority except as pay-
ment for legal goods or services 
rendered. 
‘‘(2) ADDITIONAL
REQUIREMENTS.—As-
sistance 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 pro-
vision of such assistance— 
‘‘(i) consults with the appro-
priate congressional committees 
regarding the specific programs, 
projects, and activities to be car-
ried out using such assistance; 
and 
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‘‘(ii) submits to the appro-
priate congressional committees a 
written memorandum that con-
tains the determination of the 
President 
under 
subparagraph 
(A). 
‘‘(3) DEFINITION.—In this subsection, 
the term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committee on Inter-
national Relations and the Committee 
on Appropriations of the House of 
Representatives; and 
‘‘(B) the Committee on Foreign 
Relations and the Committee on Ap-
propriations of the Senate. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) 
FOREIGN
TERRORIST
ORGANIZA-
TION.—The term ‘foreign terrorist organi-
zation’ means an organization designated 
as a foreign terrorist organization by the 
Secretary of State in accordance with 
section 219(a) of the Immigration and Na-
tionality Act (8 U.S.C. 1189(a)). 
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‘‘(2) 
PALESTINIAN
AUTHORITY.—The 
term ‘Palestinian Authority’ means the 
interim Palestinian administrative orga-
nization 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 as-
sistance 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 Gen-
eral of the United States shall submit to the 
appropriate congressional committees a re-
port that contains a review of the proposed 
procedures by which United States assistance 
to the Palestinian Authority under the For-
eign Assistance Act of 1961 will be audited by 
the Department of State, the United States 
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Agency for International Development, and 
all other relevant 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 organiza-
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tions 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 re-
spect 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 Gov-
ernment of the United States unless the Sec-
retary of State or the Administrator of the 
United States Agency for International Devel-
opment determines that such marking will en-
danger the lives or safety of persons deliv-
ering or receiving such assistance or would 
have a material adverse effect on the imple-
mentation of such assistance. 
‘‘(c) CONGRESSIONAL NOTIFICATION.—Assist-
ance made available under this Act to non-
governmental 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 Represent-
atives and to the Committee on Foreign Rela-
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tions 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 na-
tional security interests of the United 
States; and 
‘‘(B) not less than 25 days prior to 
the obligation of amounts for the pro-
vision of such assistance— 
‘‘(i) consults with the appro-
priate congressional committees 
regarding the specific programs, 
projects, and activities to be car-
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ried out using such assistance; 
and 
‘‘(ii) submits to the appro-
priate congressional committees a 
written memorandum that con-
tains 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 secu-
rity interests of the United States. 
‘‘(3) DEFINITION.—In this subsection, 
the term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committee on Inter-
national Relations and the Committee 
on Appropriations of the House of 
Representatives; and 
‘‘(B) the Committee on Foreign 
Relations and the Committee on Ap-
propriations of the Senate.’’. 
(b) OVERSIGHT
AND
RELATED
REQUIRE-
MENTS.— 
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(1) OVERSIGHT.—For each of the fiscal 
years 2007 and 2008, the Secretary of 
State shall certify to the appropriate con-
gressional committees not later than 30 
days prior to the initial obligation of 
amounts for assistance to nongovern-
mental organizations for the West Bank 
or Gaza under the Foreign Assistance Act 
of 1961 that procedures have been estab-
lished to ensure that the Comptroller 
General of the United States will have ac-
cess to appropriate United States finan-
cial information in order to review the 
use of such assistance. 
(2) VETTING.—Prior to any obligation 
of amounts for assistance to nongovern-
mental 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 Sec-
retary knows, or has reason to believe, 
advocates, plans, sponsors, engages in, or 
has engaged in, terrorist activity. The 
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Secretary shall, as appropriate, establish 
procedures specifying the steps to be 
taken in carrying out this paragraph and 
shall terminate assistance to any indi-
vidual 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 assist-
ance to nongovernmental organizations 
for the West Bank or Gaza under the For-
eign 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 Adminis-
trator of the United States Agency for 
International Development shall en-
sure that independent audits of all 
contractors and grantees, and signifi-
cant subcontractors and subgrantees, 
that receive amounts for assistance to 
nongovernmental organizations for 
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the West Bank or Gaza under the For-
eign Assistance Act of 1961 are con-
ducted 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 For-
eign Assistance Act of 1961, up to 
$1,000,000 for each such fiscal year 
may be used by the Office of the In-
spector General of the United States 
Agency for International Develop-
ment 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 
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assistance to nongovernmental organizations 
for the West Bank and Gaza under any provi-
sion 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 func-
tions of the entities specified in para-
graph (2); and 
(B) transmit to the appropriate 
congressional committees a report 
containing recommendations for the 
elimination of such entities and ef-
forts that are duplicative or fail to en-
sure balance in the approach of the 
United Nations to Israeli-Palestinian 
issues. 
(2) ENTITIES
SPECIFIED.—The entities 
referred to in paragraph (1) are the fol-
lowing: 
(A) The United Nations Division 
for Palestinian Rights. 
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(B) The Committee on the Exer-
cise of the Inalienable Rights of the 
Palestinian People. 
(C) The United Nations Special 
Coordinator 
for 
the 
Middle 
East 
Peace Process and Personal Rep-
resentative to the Palestine Libera-
tion Organization and the Palestinian 
Authority. 
(D) The NGO Network on the 
Question of Palestine. 
(E) The Special Committee to In-
vestigate Israeli Practices Affecting 
the Human Rights of the Palestinian 
People and Other Arabs of the Occu-
pied Territories. 
(F) Any other entity the Secretary 
determines results in duplicative ef-
forts or funding or fails to ensure bal-
ance in the approach to Israeli-Pales-
tinian issues. 
(b) IMPLEMENTATION OF RECOMMENDATIONS 
BY PERMANENT REPRESENTATIVE.— 
(1) IN
GENERAL.—The United States 
Permanent Representative to the United 
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Nations shall use the voice, vote, and in-
fluence of the United States at the United 
Nations to seek the implementation of 
the recommendations contained in the re-
port required under subsection (a)(1)(B). 
(2) 
WITHHOLDING
OF
FUNDS.—Until 
such recommendations have been imple-
mented, the Secretary of State is author-
ized to withhold from United States con-
tributions to the regular assessed budget 
of the United Nations for a biennial pe-
riod amounts that are proportional to the 
percentage of such budget that are ex-
pended for such entities. 
(c) GAO AUDIT.—The Comptroller General 
shall conduct an audit of the status of the im-
plementation of the recommendations con-
tained in the report required under sub-
section (a)(1)(B). 
(d) WITHHOLDING OF FUNDS WITH RESPECT 
TO
THE
PALESTINIAN
AUTHORITY.—The Sec-
retary of State is authorized to withhold from 
United States contributions to the regular as-
sessed budget of the United Nations for a bi-
ennial period amounts that are proportional 
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to the percentage of such budget that are ex-
pended 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 Pales-
tinian 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 Pales-
tinian 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). 
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