In April 2021, the U.S. government reinstated the U.S. Agency for International Development’s (USAID) West Bank and Gaza program, leveraging Economic Support Fund assistance after a suspension in January 2019. In the process of resuming the program, USAID adhered to established policies, notably Mission Order 21, employing additional vetting measures for U.S.-based organizations. Mission Order 21 sets out requisites to prevent inadvertent funding to entities associated with terrorism.
Throughout the program’s suspension, experienced staff from the West Bank and Gaza mission were temporarily reassigned to other missions, subsequently returning upon its resumption. By September 2022, USAID had fully obligated the $150 million in Economic Support Fund assistance allocated by Congress for fiscal years 2020 and 2021. The majority of the funds were allocated for project assistance, with approximately 16 percent directed towards debt relief payments to the East Jerusalem Hospital Network, in compliance with U.S. law.
A Government Accountability Office (GAO) review revealed that USAID generally adhered to Mission Order 21 requirements from fiscal years 2020 through 2022. The order encompasses vetting procedures, anti-terrorism certifications, and mandatory provisions in award documents. GAO’s scrutiny, encompassing 18 active prime awards and a random sample of 106 subaward actions, identified one instance of late vetting for a subaward action. Additionally, USAID commissioned compliance reviews and financial audits, with instances of noncompliance promptly addressed by awardees.
The report underscores the substantial U.S. assistance to Palestinians in the West Bank and Gaza, surpassing $7.6 billion since 1993. Primarily delivered through the Economic Support Fund, this aid focuses on diverse projects, including economic growth and recovery. USAID, responsible for program administration, ensures compliance with anti-terrorism policies.
Mandated by fiscal years 2020 to 2022 appropriations acts, the GAO review scrutinizes the Economic Support Fund’s utilization for West Bank and Gaza assistance. The report provides insights into the program’s status as of September 30, 2022, and assesses USAID’s compliance with anti-terrorism policies and procedures during fiscal years 2020 through 2022. The comprehensive analysis draws upon relevant laws, USAID data, policies, procedures, compliance reports, financial audits, and interviews with USAID and State officials.
Read the rest of the story at GAO, here.
