No United States Aid for Terrorism Act
- Sponsor
- Sen. Paul, Rand [R-KY]
- Committees
- Foreign Relations Committee (primary)
- Last action
- Sep 29, 2026
Bottom line
The bill imposes a comprehensive ban on U.S. aid to Palestinian governing entities and related international organizations, with stringent conditions for reinstatement aimed at ensuring accountability and security.
What it actually does
This bill prohibits all direct United States foreign assistance, loan guarantees, or debt relief to the Palestinian Authority (PA), Hamas, or any other Palestinian governing entity in the West Bank and Gaza. It also prohibits funding to any international organization that provides assistance of any kind to these entities. The prohibition can only be lifted if the President certifies that the Palestinian entity has met six strict conditions, including publicly recognizing Israel, renouncing terrorism, purging terrorist ties from security services, and terminating anti-American and anti-Israel incitement.
Proponents argue
Proponents argue that this bill is a necessary measure to ensure that United States taxpayer funds do not directly or indirectly support entities engaged in terrorism or significant human rights abuses, especially in light of the October 7, 2023, attacks. They contend that the conditions for resuming aid are essential for promoting peace, security, and responsible governance in the region, and for holding Palestinian leadership accountable for their actions and rhetoric.
Opponents contend
Opponents might argue that a blanket prohibition on aid, including to international organizations, could severely exacerbate humanitarian crises in the West Bank and Gaza, destabilize the region further, and undermine any future diplomatic efforts. They may contend that cutting off all aid could reduce U.S. leverage and inadvertently punish innocent Palestinian civilians who rely on such assistance for basic services, potentially leading to increased radicalization.
The bill is short and clearly written, making it accessible for an informed reader to understand its core provisions and implications within a short timeframe.
Section 1
Short Title
This section establishes the official short title of the Act as the "No United States Aid for Terrorism Act." This title clearly communicates the bill's primary objective and intent to the public.
Supporters argue
Proponents argue that a clear and direct title like this immediately conveys the bill's critical purpose: to prevent U.S. funds from supporting terrorism, aligning with public sentiment for accountability.
Critics contend
No specific opposition is typically raised against the short title itself, though opponents of the bill's substance may view the title as politically charged or misleading.
Tradeoffs
The title aims for clarity and strong messaging, which can sometimes be perceived as overly simplistic or politically motivated by those who oppose the bill's broader policy implications.
Section 2
Findings of Congress
This section outlines the factual basis and justifications for the bill. It cites the October 7, 2023, Hamas attack on Israel, the loss of U.S. citizens, the significant amount of past U.S. bilateral assistance to Palestinians, and detailed human rights issues identified by the Department of State regarding both the Palestinian Authority and Hamas in 2024.
Section 3
Definitions of Key Terms
This section defines crucial terms used throughout the Act. It specifies "appropriate congressional committees" for reporting requirements and, most importantly, broadly defines "Palestinian governing entity" to include the Palestinian Authority, Hamas, any of their ministries or agencies, and any successor, affiliated, or other Palestinian entity exercising governmental or administrative authority in the West Bank or Gaza.
Section 4(a)-(b)
Report on Human Rights Practices
This section mandates the Secretary of State to submit a report to Congress within 30 days of the Act's enactment. The report must detail alleged human rights violations by Palestinian governing entities, including denial of rights to Israeli citizens, Jewish individuals, women, girls, or minorities, and practices like torture or arbitrary detention. It also requires a description of U.S. efforts to promote human rights, the intended uses of any U.S. assistance, and a list of international organizations receiving U.S. funds that provide assistance to these Palestinian entities.
Section 4(c)(1)
Prohibition on United States Assistance
This is the core operative provision of the bill, enacting a broad prohibition. It states that no U.S. funds may be obligated or expended for any direct U.S. assistance, loan guarantee, or debt relief to the Palestinian Authority or any other Palestinian governing entity in the West Bank and Gaza. Crucially, it also extends this prohibition to any international organization that provides assistance of any kind to these Palestinian governing entities.
Section 4(c)(2)
Exception to the Prohibition on Assistance
This section outlines the specific conditions under which the President may certify to Congress that the prohibition on assistance can be lifted for a fiscal year. These conditions require the Palestinian Authority or other Palestinian governing entity to: publicly recognize the State of Israel, renounce terrorism, purge all individuals with terrorist ties from security services, terminate funding of anti-American and anti-Israel incitement, publicly renounce Hamas and the October 7, 2023, attacks, and honor previous diplomatic agreements.
The definition of "Palestinian governing entity" includes "any successor, affiliated, or other Palestinian entity that exercises governmental or administrative authority over any portion of the West Bank or Gaza."
Section 3(2)(D)
Why it matters:While definitions are standard legislative practice, the breadth of this particular definition is highly consequential and could be easily overlooked, yet it significantly expands the reach of the aid prohibition beyond explicitly named entities.
Case for: Supporters would argue this broad definition is necessary to prevent evasion of the aid prohibition. Without it, Palestinian entities could simply reorganize or create new affiliated bodies to continue receiving aid, undermining the bill's intent.
Case against: Critics might contend that this expansive definition could inadvertently capture legitimate, non-political, or humanitarian organizations that have some administrative function, making it exceedingly difficult for any entity to operate without falling under the prohibition, even if they are not involved in terrorism.
Estimated impact: Significantly broadens the scope of the aid prohibition, potentially affecting a wide array of existing and future Palestinian organizations and administrative bodies.
The prohibition on assistance extends to "any international organization that provides assistance of any kind to the Palestinian Authority or any other Palestinian governing entity in the West Bank and Gaza."
Section 4(c)(1)
Why it matters:This clause significantly expands the bill's impact beyond direct bilateral aid, potentially affecting a vast network of humanitarian and development organizations. Its broad wording could lead to far-reaching consequences that are not immediately apparent.
Case for: Proponents would argue that this provision is essential to prevent indirect funding of hostile entities. If international organizations receive U.S. funds and then provide assistance to Palestinian governing bodies, it could be seen as a loophole that undermines the bill's intent.
Case against: Opponents would argue that this provision is overly broad and could cripple humanitarian efforts. Many international organizations provide essential services (e.g., health, education, infrastructure) that might require some level of coordination or interaction with local governing entities, regardless of their political nature. Cutting off funding to these organizations could have devastating humanitarian consequences.
Estimated impact: Potentially disrupts a wide range of humanitarian, development, and social services provided by international organizations in the West Bank and Gaza, impacting millions of Palestinian civilians.