Foreign Funding Approps

The 2010 fiscal year omnibus appropriations bill signed into law last month coupled with the supplemental appropriations bill from last summer mark a slight boost in foreign operations funding and imposes some interesting limitations on the use of funds for Israel and the Palestinian Authority,

Israel receives $2.78 billion in FY2010  for Foreign Military Financing, an increase from $2.38  billion FY2009. Israel does not receive Economic Support Funds. The appropriation matches the administration’s budget request.

The West Bank and Gaza receive no Foriegn Military Financing but are granted $400 million in FY2010 for Economic Support Funds compared with $781 million in FY2009. Some of the funding reflects the U.S. commitment to assist in Gaza rebuilding efforts following Operation Cast Lead and attempts to assist the Palestinian Authority rectify its budget shortfall.

Notably, the conference report:

• prohibits use of the funds for any residents of Israeli settlements in the West Bank and does not include language regarding refugees resettling in Israel;
• mandates $584 million of appropriations for Israel to offshore procurement;
• imposes a $150 million maximum limit on direct cash assistance to the West Bank and Gaza;
• appropriates $375,000 for the Israeli Arab Scholarship Program;
• supports educational advocacy efforts for Palestinian children, including residents of the Gaza Strip; and
• mandates a report to the House and Senate Appropriations Committees on Arab state efforts in support of the Palestinian Authority (stay tuned for that!).