State and USAID: The achievement of a negotiated two-state solution to the Israeli-Palestinian conflict is a core U.S. national security objective. The U.S. Government’s foreign assistance program in the West Bank and Gaza is designed to advance progress toward the two-state solution by helping the Palestinian Authority (PA) build the institutions of a future Palestinian state, creating an atmosphere that supports negotiations, and improving the everyday lives of Palestinians, thereby contributing to the overall stability and security of the region.

Operating in a complex environment, the West Bank and Gaza program is subject to a number of internal and external forces that influence the delivery of U.S. assistance, including the PA’s pursuit of international recognition, intra-Palestinian reconciliation efforts, cross border military attacks, restrictions on movement and access, and the continued presence of Hamas as the de facto governing authority in Gaza. Despite these challenges, significant programmatic results have been achieved in recent years. Programs are aligned with the PA’s short and long-term development planning vision, the Oslo Accords, the Roadmap, and the Quartet Principles. In support of the goal of a negotiated two-state solution, the U.S. Government’s foreign assistance program in the West Bank and Gaza will continue to focus on developing a viable Palestinian state through improvements in the security environment, infrastructure networks, service delivery systems, governance systems, and economic vitality of the private sector, as well as the provision of direct budget support for the PA. (Source: Congressional Budget Justification FY 2013)