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           ACongressional
           *aResearch Service






Anti-Terrorism Clarification Act of 2018 (P.L.

115-253) and U.S. Aid for the Palestinians



Updated February 5, 2019

The Anti-Terrorism Clarification Act (ATCA, P.L. 115-253) became law on October 3, 2018. Congress
passed the law in the wake of a U.S. federal court case dealing with past acts of terrorism by Palestinians
(discussed below, U.S. Policy Implications and Options). The law amended the Anti-Terrorism Act
(ATA) (at 18 U.S.C. 2334) by stating that a defendant consents to personal jurisdiction in U.S. federal
court for lawsuits related to international terrorism if the defendant accepts certain types of U.S. foreign
aid after the law has been in effect for 120 days.
In December, Palestinian Authority (PA) Prime Minister Rami Hamdallah wrote to Secretary of State
Mike Pompeo  that the PA would not accept aid that subjected it to federal court jurisdiction.
Consequently, U.S. bilateral aid to the Palestinians ended on January 31, 2019. Apparently, it will not
resume unless Congress amends or repeals the ATCA, or the Administration channels the aid differently.
The end of bilateral aid has halted U.S.-funded programs that began in 1975 with a focus on economic
and humanitarian needs, and were expanded from 1994 (in the context of the Israeli-Palestinian peace
process) to assist with security and Palestinian self-governance after the PA was formed. The effect of
ending aid is as follows:
    *  Economic  assistance. Although the Trump Administration decided in September 2018 to
       reprogram all of the FY2017 Economic Support Fund (ESF) aid from the West Bank and
       Gaza to other recipients, some aid projects continued in the West Bank and Gaza using
       prior-year funding. These projects have now shut down, though the USAID mission that
       manages them remains in the region.
    *  Security assistance. After the Administration reprogrammed or discontinued various
       funding streams for the Palestinians during 2018, the main U.S. aid category remaining
       was the International Narcotics Control and Law Enforcement account (INCLE). This
       security assistance account supported nonlethal train-and-equip programs for PA West
       Bank security forces (PASF). INCLE assistance, along with $1 million per year in
       Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR) assistance,
       ended due to the ATCA. Reportedly, the office of the U.S. Security Coordinator for Israel
       and the Palestinian Authority (US SC), a U.S.-led multilateral mission based in Jerusalem,

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