H.R. 1164 would make certain foreign assistance for the Palestinian Authority (PA) dependent on certifications by the Secretary of State that the PA has ended payments to individuals who commit terrorist acts against Israeli and U.S. citizens and taken other steps to reduce violence. If the department cannot so certify, the withheld funds would remain available for obligation for an additional two years and become available for other uses. Finally, the bill would require annual reports to the Congress on the implementation of the bill and related matters.
CBO estimates that the reporting requirements and administrative efforts associated with implementing H.R. 1164 would cost less than $500,000 over the 2018-2022 period; such spending would be subject to the availability of appropriated funds.
Since 2015, annual appropriations acts have required the department to reduce assistance to the PA by amounts equal to terrorism-related payments. In 2016, assistance to the PA totaled roughly $260 million (after accounting for those reductions). H.R. 1164 would impose additional restrictions by making assistance that directly benefits the PA subject to certification. CBO expects that the department would continue its practise of repurposing any funds withheld from the PA and estimates that imposing certification requirements would not have any significant effects on spending subject to appropriation.