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                                                                                             Updated April 15, 2025

The Palestinians: Overview, Aid, and U.S. Policy Issues


The Palestinians are an Arab people whose origins are in
present-day Israel, the West Bank, and the Gaza Strip. The
October 7, 2023, attacks on Israel-led by the Iran-backed
Sunni Islamist group Hamas (a U.S.-designated foreign
terrorist organization)-and subsequent conflict in Gaza
have raised challenges for U.S. policy in the region.
Palestinian issues that had arguably faded as a priority since
the 2010s for the United States and many Arab states
became  prominent again. How to end the war and
implement  a governance and security transition in Gaza are
crucial questions, along with potentially interrelated
developments regarding political outcomes in the West
Bank, the status of Jerusalem, risks of broader regional war
with Iran and its allies, and Israel's efforts to improve its
security and relations with Arab states.
Successive U.S. Administrations and Congresses have
helped shape developments on Palestinian issues. Since the
mid-1990s, U.S. officials have sought to facilitate a
negotiated Israeli-Palestinian peace. During much of that
time, Congress has appropriated bilateral economic and
nonlethal security aid in support of stated U.S. goals to
assist Palestinian governance, civil society, and economic
development, while also appropriating humanitarian aid for
Palestinians in the region. The Bush, Obama, and Biden
Administrations voiced open support for an eventual
independent Palestinian state in the West Bank and Gaza,
with a capital in East Jerusalem. In 2017, President Donald
Trump  recognized Jerusalem as Israel's capital (while
leaving sovereign boundaries open to negotiation), and in
2020, his first Administration presented a plan to
potentially allow for Palestinian statehood under certain
conditions.
Prospects for a Palestinian state seem unclear amid various
regional challenges, resistance from Israeli officials, and
questions regarding U.S. policy in early 2025. The Trump
Administration appears to have relaxed U.S. scrutiny of the
continued or expanded Israeli control and settlement
activity in the West Bank that could present obstacles to
Palestinian statehood. President Trump also has raised ideas
about possible U.S. responsibility for Gaza and its
reconstruction, and the potential relocation of Gazans, that
have generated debate. Additionally, his Administration's
review of U.S. foreign aid has reportedly led to reductions
or delays in aid for the West Bank and Gaza.
The war in Gaza has reportedly resulted in more than 1,600
Israeli and (according to the Hamas-controlled health
ministry in Gaza) 50,000 Palestinian deaths. Some 59
hostages are reportedly held by Hamas or other militants in
Gaza. During the war, a great majority of Gazans have
faced displacement, and most continue to face threats from
fighting, overcrowding, and/or acute shortages of food,
water, and medical care. U.S. officials have provided
material support for Israel's operations against Hamas in
Gaza, while also seeking to help mediate a ceasefire and
hostage releases. Since early March 2025, Israel has
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prevented new supplies of food and other humanitarian aid
from coming  into Gaza.
The duration and intensity of Israeli military operations and
the issue of who manages Gaza's reconstruction, security,
and governance remain open questions. Arab and many
European  states support the return to power in Gaza of the
Palestinian Authority (PA)-which  currently exercises
limited self-rule in the West Bank. Israel has to date
publicly rejected renewed rule by the PA, alleging that it
has engaged in corruption and supported terrorism, while
the PA insists that any return it makes to Gaza be linked
with progress toward a two-state solution. Hamas forcibly
seized Gaza from the PA in 2007.
Overview:   Population,  Politics, and Economy
About  3 million Palestinians live in the West Bank, plus an
estimated 2.1 million in Gaza. Around 98% are Sunni
Muslim,  with a small Christian minority. Another estimated
2 million Palestinians live in Israel as citizens. Of the
Palestinians living in the Middle East, about 5.9 million are
registered refugees (in the West Bank, Gaza, Jordan,
Lebanon, and Syria) whose claims to land in present-day
Israel constitute a major issue of Israeli-Palestinian dispute.
The UN  Relief and Works Agency  for Palestine Refugees
in the Near East (UNRWA)-funded mostly by voluntary
contributions from various countries-is mandated by the
UN  General Assembly  to provide protection and services to
these registered refugees. The United States has not funded
UNRWA since January 2024,   when  allegations surfaced
that some UNRWA staff   may have participated in the
October 2023 attacks against Israel.








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Source: Economist Intelligence Unit.
Note: West Bank and Gaza Strip borders remain subject to Israeli-
Palestinian negotiation.
Palestinian domestic politics are dominated by two factions.
Fatah, a secular Arab nationalist faction, is the driving force
within the Palestine Liberation Organization (PLO), which


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