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Trump admin quietly reinstated some $80m in USAID funds for Gazan aid, official says

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(JNS) The State Department and U.S. Agency for International Development told Congress on Friday that they intend to “reorganize” the U.S. Agency for International Development, incorporating certain parts into the department by July 1 and discontinuing the other parts of USAID, which “do not align with administration priorities.”

Critics have long said that USAID helps fund enemies of the Jewish state, including having “spent millions on a non-profit that pushed anti-Israel and antisemitic rap songs,” Rep. Mike Lawler (R-N.Y.) wrote last month. The Trump administration has also said that many of USAID’s funded programs are out of sync with U.S. priorities and values.

But a USAID official, who declined to be named, told JNS that Washington has already restored most of the aid intended for Gaza, which the Trump administration slashed in its broader cuts to foreign aid. That restoration occurred, per the official, before the collapse of the Israel-Hamas hostage release and ceasefire deal some two weeks ago.

.The Trump administration did not realize at first that some aid funding for Gaza was tied directly to conditions of the U.S.-brokered ceasefire deal, according to the USAID official.

“Initially, everything was paused for a few days, but the administration has worked back to a place where most of the humanitarian assistance for Gaza is still continuing from the United States,” the official said.

The official estimates that about $80 million of funding for the World Food Programme, UNICEF and some large nonprofits was in the pipeline and ready to go out when the White House froze it. Some six of 12 USAID programs in Gaza, which were eliminated, have been or will be resumed, per the official. Another $200 million in longer-term development projects in Palestinian-controlled territories appears to be paused.

“This would mean all the support to clinics, the work to build a new wastewater treatment plant in Jenin, the work to provide basic education for at-risk youth, training work,” the official told JNS. “All those things that may not be immediately life-saving, but are life-saving in a longer time frame.”

The official said that Israeli authorities had approved all such work and see those development projects as “work that stabilizes the region and makes Israel safer and that helps us to kind of avert the development of terrorism and extremist ideology.”

A U.N. spokesman referred JNS to USAID. JNS has sought comment repeatedly from the State Department.

Enia Krivine, senior director of Israel programs and the national security network at the Foundation for Defense of Democracies, told JNS that this approach is “very Trump.”

“He does the extreme,” she said. “He starts his negotiation with a very strong opening gesture, and then he works backwards from there. I think that some of these programs are going to get refunded in the coming months and years, but I think that they’re going to have to prove their merit, and they’re going to have to make the case.”

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No one wants to take money from “these important programs that are supposed to reduce radicalization and try to help people,” Krivine told JNS. “But on the other hand, that’s a responsibility of the Palestinian Authority government, and they have plenty of resources to provide these services to their people.”

Israel is not typically a recipient of USAID funding, given its high incomes and development levels, but two programs that are exceptions to that rule have both been canceled.

The 2020 Middle East Partnership for Peace Act, which U.S. President Donald Trump signed into law during his first term in office, grants about $50 million worth of development funds annually for Israeli and Palestinian peacebuilding. The majority of the partnership’s partners are Israeli nonprofits, according to Daniel McDonald, director of operations for implementation of the program at USAID.

McDonald is among thousands of USAID staff members whom the Trump administration has placed on leave. His employment is set to expire next month.

“Some of the work happens exclusively within Israel, between Israeli Arabs and Jewish Israelis,” McDonald told JNS. “Some of it happens in Jerusalem, and some of it happens cross-border between Israel and either the West Bank or Gaza.”

All 28 programs funded through the partnership received cancellation notices from USAID, according to McDonald.

The other category of work, for which Israel received USAID funding, is the Middle East Regional Cooperation program, which aims to improve research and development cooperation between Israel and its neighbors. That program gets about $20 million in annual USAID funding.

The USAID official who spoke to JNS anonymously said that all parts of that program have been suspended.

A reporter asked Tammy Bruce, the U.S. State Department spokeswoman, during the department’s press briefing on Friday if it would include aid to Gaza in its continuing operations.

“We’re at a state where Congress has just been notified that this transition is happening,” she said. “I can’t speak to the decisions that’ll be made once that decision occurs through USAID as it exists and how it moves into State.”

Bruce described a complicated dynamic but said that “aid can immediately move through that situation through all of our regional partners, people who are concerned if Hamas were to release its hostages and lay down its arms.”

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