This report describes issues related to U.S. aid provided to Palestine to support prevention/combating against terrorism, creating coexistence with Israel and self-governance, and meeting humanitarian needs. In includes introductory and historical background as well as in-depth analysis of the types of U.S. bilateral aid to Palestine, U.S. contributions to the U.N. Relief and Works Agency for Palestine Refugees in the near East (UNRWA), and the issues involved in determining future aid.

This report discuses President's Trump's announcement recognizing Jerusalem as the capitol of Israel and stating that the U.S. embassy would be moved there from Tel Aviv "as soon as practicable". It includes an overview of policy questions and concerns, international reactions, and Congressional reactions.