Contents: (1) U.S.-Israeli Relations and the Role of Foreign Aid; (2) U.S. Bilateral Military Aid to Israel: A 10-Year Military Aid Agreement; Foreign Military Financing; Ongoing U.S.-Israeli Defense Procurement Negotiations; (3) Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs: Multi-Layered Missile Defense; High Altitude Missile Defense System; (4) Aid Restrictions and Possible Violations: Israeli Arms Sales to China; Israeli Settlements; (5) Other Ongoing Assistance and Cooperative Programs: Migration and Refugee Assistance; Loan Guarantees for Economic Recovery; American Schools and Hospitals Abroad Program; U.S.-Israeli Scientific and Business Cooperation; (6) Historical Background. Illustrations.

Contents: (1) Intro.; (2) Overview and Recent Developments; (3) Types of U.S. Bilateral Aid to the Palestinians: Project Assistance Through USAID; Types of Funding Programs; Vetting Require. and Procedures; Direct Assistance to the Palestinian Authority (PA); U.S. Security Assistance to the PA; (4) U.S. Contributions to UNRWA; (5) The $900 Million U.S. Pledge; Hamas¿s Role in a ¿Unity Gov¿t.; International Pledges and the Gaza Reconstruction Effort; (6) Proposed FY 2010 Appropriations; (7) Factors in Determining Future Aid: Effectiveness of U.S. Assistance in Strengthening the PA in the West Bank; Economic Development and International Donor Assistance; Hamas and a ¿Unity Gov¿t.¿?; Questions Regarding a Two-State Solution. Charts and tables.

The U.S. provided $575 million in assistance to Palestinians in 2008. This assistance is provided through the U.S. Agency for International Development (USAID) and the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). The Dept. of State (State) oversees U.S. contributions to UNRWA. To help ensure that U.S. funds for these programs are not provided to individuals or entities engaged in terrorist activities, USAID and State must comply with restrictions under U.S. law. This report: (1) assesses the extent to which USAID has complied with its antiterrorism policies and procedures; and (2) assesses State's and UNRWA's policies and procedures to support conformance with U.S. statutory conditions. Illus.

Financing the Flames pulls the cover off the robust use of US tax-exempt, tax-subsidized, and public monies to foment agitation, systematically destabilize the Israel Defense Forces, and finance terrorists in Israel. In a far-flung investigation in the United States, Israel and the West Bank, human-rights investigative reporter Edwin Black documents that it is actually the highly politicized human rights organizations and NGOs themselves all American taxpayer supported which are financing the flames that make peace in Israel difficult if not impossible. Black spotlights key charitable organizations such as the Ford Foundation, George Soros s Open Society Foundations, the New Israel Fund, and many others, as well as American taxpayers as a group. Instead of promoting peace and reconciliation between Arabs and Israelis, a variety of taxpayer-subsidized organizations have funded a culture where peace does not pay, but warfare and confrontation do. Ironically, several Jewish organizations, scooping up millions in tax-subsidized donations, stand at the forefront of the problem. At the same time, the author details at great length the laudable and helpful activities of such groups as the New Israel Fund; he chronicles a heartbreaking conflict between stated intent and true impact on the ground. In addition to documenting questionable 501(c)(3) activity, Black documents the direct relationship between taxpayer assistance to the Palestinian Authority and individuals engaged in terrorism against civilians.