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October 4, 2011

U.S. Lawmakers Confirm Blocking $200 Million in Aid to Palestine, Amid U.N. Statehood Bid 
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A bipartisan group of U.S. lawmakers have confirmed they are blocking
almost $200 million in aid to the Palestinian Authority. Republican
Congresswoman Kay Granger of Texas said she placed her hold in August,
"until the issue of statehood is resolved" at the United Nations. The
Palestinian Authority said U.S. AID has already suspended some West Bank
development projects due to the frozen funds. Now in jeopardy is an $85
million five-year plan to improve Palestinian health services. The
Palestinian Authority is heavily reliant on foreign aid and was already
in serious financial straits before the aid was cut off. The Obama
administration appears to be at odds with Congress on the issue. On
Monday, U.S. Defense Secretary Leon Panetta said this is no time to
withhold the funds. Panetta made the comment on his first trip to Israel
since becoming Pentagon chief. He said that Israel was becoming
increasingly isolated in the Middle East, but maintained that the United
States would do "everything" to support Israel.

Leon Panetta, U.S. Secretary of Defense: "I look forward to the ability
to discuss some of the difficult challenges that face not only Israel
but the United States as well. The most important thing I bring with me
is a continuing commitment to the security of Israel. We have been
strong allies, we have been strong partners, we have always made a
commitment to do everything we can to support the security of Israel and
as the Secretary of Defense I intend to continue that commitment."



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