The Biden administration plans to provide at least $235 million in U.S. aid to the Palestinians, restoring a large part of the assistance that was cut off by then-President Donald Trump, people familiar with the matter said.
The package, including humanitarian, economic and security aid, is expected to be announced by the State Department later on Wednesday as part of an effort to repair U.S. ties with the Palestinians that all but collapsed during Trumps tenure.
It will mark Democratic President Joe Biden's most significant move since taking office on Jan. 20 to make good on his promise to roll back some components of his Republican predecessor's approach that Palestinians denounced as heavily biased in favor of Israel.
The plan calls for $150 million through the United Nations relief agency UNWRA, $75 million in U.S. economic support and $10 million in development funding, according to a notice emailed by the administration to congressional offices.
The new administration has previously pledged to resume hundreds of millions of dollars in economic and humanitarian assistance and work toward reopening the Palestinians' diplomatic mission in Washington.
Biden's aides have also made clear they want to re-establish the goal of a negotiated two-state solution as a priority in U.S. policy on the Israeli-Palestinian conflict.
But they have moved cautiously so far, and any major steps are likely to wait following Israel's inconclusive March election, which will be followed by Palestinian elections scheduled in coming months.
The Trump administration blocked nearly all aid since it severed ties with the Palestinian Authority in 2018. The move was widely seen as an attempt to force the Palestinians to negotiate with Israel on terms the Palestinian leadership branded as an effort to deny them a viable state.
The cuts came after Palestinian leaders decided to boycott the Trump administration's peace efforts over its decision to recognize Jerusalem as the capital of Israel and move the U.S. embassy there from Tel Aviv, upending decades of U.S. policy.
This included rescinding aid to funding for the United Nations Works and Relief Agency (UNWRA), which provides aid and relief services to around 5.7 million registered Palestinian refugees across the Middle East.
The bulk of the restored funding will be funneled to UNWRA while separate economic aid will go through an Economic Support Fund for programs in the West Bank and Gaza, and the development money via the U.S. Agency for International Development, according to a congressional source.
The notice to Congress also said Washington would resume security assistance to the Palestinians, the source said.
However, the administration is likely to hold back for now on resuming direct economic aid to the Palestinian Authority while Biden's aides consult with Congress on potential legal obstacles, according to one person familiar with the matter. The notice to Congress assured lawmakers that all assistance would be consistent with U.S. law.
The money that will go to UNWRA does not immediately restore contributions to the $365 million level that the U.S. gave to the agency in 2017.