SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Palestinian and United Nations Anti-
Terrorism Act of 2014''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) On April 23, 2014, representatives of the Palestinian 
        Liberation Organization and Hamas, a designated terrorist 
        organization, signed an agreement to form a government of 
        national consensus.
            (2) On June 2, 2014, Palestinian President Mahmoud Abbas 
        announced a unity government as a result of the April 23, 2014, 
        agreement.
            (3) United States law requires that any Palestinian 
        government that ``includes Hamas as a member'', or over which 
        Hamas exercises ``undue influence'', only receive United States 
        assistance if certain certifications are made to Congress.
            (4) The President has taken the position that the current 
        Palestinian government does not include members of Hamas or is 
        influenced by Hamas and has thus not made the certifications 
        required under current law.
            (5) The leadership of the Palestinian Authority has failed 
        to completely denounce and distance itself from Hamas' campaign 
        of terrorism against Israel.
            (6) President Abbas has refused to dissolve the power-
        sharing agreement with Hamas even as more than 2,300 rockets 
        have targeted Israel since July 2, 2014.
            (7) President Abbas and other Palestinian Authority 
        officials have failed to condemn Hamas' extensive use of the 
        Palestinian people as human shields.
            (8) The Israeli Defense Forces have gone to unprecedented 
        lengths for a modern military to limit civilian casualties.
            (9) On July 23, 2014, the United Nations Human Rights 
        Council adopted a one-sided resolution criticizing Israel's 
        ongoing military operations in Gaza.
            (10) The United Nations Human Rights Council has a long 
        history of taking anti-Israel actions while ignoring the 
        widespread and egregious human rights violations of many other 
        countries, including some of its own members.
            (11) On July 16, 2014, officials of the United Nations 
        Relief and Works Agency for Palestine Refugees in the Near East 
        (UNRWA) discovered 20 rockets in one of the organization's 
        schools in Gaza, before returning the weapons to local 
        Palestinian officials rather than dismantling them.
            (12) On multiple occasions during the conflict in Gaza, 
        Hamas has used the facilities and the areas surrounding UNRWA 
        locations to store weapons, harbor their fighters, and conduct 
        attacks.

SEC. 3. DECLARATION OF POLICY.

    It shall be the policy of the United States--
            (1) to deny United States assistance to any entity or 
        international organization that harbors or collaborates with 
        Hamas, a designated terrorist organization, until Hamas agrees 
        to recognize Israel, renounces violence, disarms, and accepts 
        prior Israeli-Palestinian agreements;
            (2) to seek a negotiated settlement of this conflict only 
        under the condition that Hamas and any United States-designated 
        terrorist groups are required to entirely disarm; and
            (3) to continue to provide security assistance to the 
        Government of Israel to assist its efforts to defend its 
        territory and people from rockets, missiles, and other threats.

SEC. 4. RESTRICTIONS ON AID TO THE PALESTINIAN AUTHORITY.

    For purposes of section 620K of the Foreign Assistance Act of 1961 
(22 U.S.C. 2378b), any power-sharing government, including the current 
government, formed in connection with the agreement signed on April 23, 
2014, between the Palestinian Liberation Organization and Hamas is 
considered a ``Hamas-controlled Palestinian Authority''.

SEC. 5. REFORM OF UNITED NATIONS HUMAN RIGHTS COUNCIL.

    (a) In General.--Until the Secretary of State submits to the 
appropriate congressional committees a certification that the 
requirements described in subsection (b) have been satisfied--
            (1) the United States contribution to the regular budget of 
        the United Nations shall be reduced by an amount equal to the 
        percentage of such contribution that the Secretary determines 
        would be allocated by the United Nations to support the United 
        Nations Human Rights Council or any of its Special Procedures;
            (2) the Secretary shall not make a voluntary contribution 
        to the United Nations Human Rights Council; and
            (3) the United States shall not run for a seat on the 
        United Nations Human Rights Council.
    (b) Certification.--The annual certification referred to in 
subsection (a) is a certification made by the Secretary of State to 
Congress that the United Nations Human Rights Council's agenda does not 
include a permanent item related to the State of Israel or the 
Palestinian territories.
    (c) Reversion of Funds.--Funds appropriated and available for a 
United States contribution to the United Nations but withheld from 
obligation and expenditure pursuant to this section shall immediately 
revert to the United States Treasury and the United States Government 
shall not consider them arrears to be repaid to any United Nations 
entity.

SEC. 6. UNITED STATES CONTRIBUTIONS TO THE UNITED NATIONS RELIEF AND 
              WORKS AGENCY FOR PALESTINE REFUGEES IN THE NEAR EAST 
              (UNRWA).

    Section 301(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2221(c)) is amended to read as follows:
    ``(c) Palestine Refugees; Considerations and Conditions for 
Furnishing Assistance.--
            ``(1) In general.--No contributions by the United States to 
        the United Nations Relief and Works Agency for Palestine 
        Refugees in the Near East (UNRWA) for programs in the West Bank 
        and Gaza, a successor entity or any related entity, or to the 
        regular budget of the United Nations for the support of UNRWA 
        or a successor entity for programs in the West Bank and Gaza, 
        may be provided until the Secretary certifies to the 
        appropriate congressional committees that--
                    ``(A) no official, employee, consultant, 
                contractor, subcontractor, representative, or affiliate 
                of UNRWA--
                            ``(i) is a member of Hamas or any United 
                        States-designated terrorist group; or
                            ``(ii) has propagated, disseminated, or 
                        incited anti-Israel, or anti-Semitic rhetoric 
                        or propaganda;
                    ``(B) no UNRWA school, hospital, clinic, other 
                facility, or other infrastructure or resource is being 
                used by Hamas or an affiliated group for operations, 
                planning, training, recruitment, fundraising, 
                indoctrination, communications, sanctuary, storage of 
                weapons or other materials, or any other purposes;
                    ``(C) UNRWA is subject to comprehensive financial 
                audits by an internationally recognized third party 
                independent auditing firm and has implemented an 
                effective system of vetting and oversight to prevent 
                the use, receipt, or diversion of any UNRWA resources 
                by Hamas or any United States-designated terrorist 
                group, or their members; and
                    ``(D) no recipient of UNRWA funds or loans is a 
                member of Hamas or any United States-designated 
                terrorist group.
            ``(2) Appropriate congressional committees defined.--In 
        this subsection, the term `appropriate congressional 
        committees' means--
                    ``(A) the Committees on Foreign Relations, 
                Appropriations, and Homeland Security and Governmental 
                Affairs of the Senate; and
                    ``(B) the Committees on Foreign Affairs, 
                Appropriations, and Oversight and Government Reform of 
                the House of Representatives.''.

SEC. 7. ISRAELI SECURITY ASSISTANCE.

    The equivalent amount of all United States contributions withheld 
from the Palestinian Authority, the United Nations Human Rights 
Council, and the United Nations Relief and Works Agency for Palestine 
Refugees in the Near East under this Act is authorized to be provided 
to--
            (1) the Government of Israel for the Iron Dome missile 
        defense system and other missile defense programs; and
            (2) underground warfare training and technology and 
        assistance to identify and deter tunneling from Palestinian-
        controlled territories into Israel.
Output: Palestinian and United Nations Anti-Terrorism Act of 2014 - States that it shall be U.S. policy to: (1) deny U.S. assistance to any entity or international organization that collaborates with Hamas until Hamas agrees to recognize Israel, renounces violence, disarms, and accepts prior Israeli-Palestinian agreements; (2) seek a negotiated settlement only if Hamas and any U.S.-designated terrorist groups are required to disarm entirely; and (3) provide security assistance to Israel.  Considers any power-sharing government, including the current government, formed in connection with the April 23, 2014, agreement between the Palestinian Liberation Organization (PLO) and Hamas to be a &quot;Hamas-controlled Palestinian Authority (PA)&quot; and thus subject to specified restrictions under the Foreign Assistance Act of 1961. States that until the Secretary of State certifies to Congress that the United Nations Human Rights Council (UNHRC)'s agenda does not include a permanent item related to Israel or the Palestinian territories: (1) the U.S. contribution to the regular budget of the United Nations (U.N.) shall be reduced by a specified amount, (2) the Secretary shall not make a voluntary contribution to UNHRC, and (3) the United States shall not run for an UNHRC seat. Amends the Foreign Assistance Act of 1961 to prohibit U.S. contributions to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) for programs in the West Bank and Gaza until the Secretary certifies to Congress that:  no official, employee, consultant, or affiliate of UNRWA is a member of Hamas or any U.S.-designated terrorist group, or has propagated or incited anti-Israel or anti-Semitic rhetoric;  no UNRWA facility or resource is being used by Hamas or an affiliated group for any purpose; UNRWA is subject to audits by an internationally recognized third party auditing firm and has implemented an oversight system to prevent the use of UNRWA resources by Hamas or any U.S.-designated terrorist group; and no recipient of UNRWA funds or loans is a member of Hamas or any U.S.-designated terrorist group.   Authorizes the equivalent amount of all U.S. contributions withheld from the PA, UNHRC, and UNRWA under this Act to be provided to Israel for Iron Dome and other missile defense systems and for underground warfare training and technology.