West Bank and Gaza: State Should Incorporate Leading Practices and Lessons Learned into Anti-Terrorism Oversight

USAID allocated $624 million in Economic Support Fund assistance to the West Bank and Gaza for FY 2022-2024, funding 37 awards in water infrastructure, education, and debt relief, before State took over administration in July 2025. GAO found USAID largely complied with its anti-terrorism policies during that period, with a few exceptions, and all 37 awards have since ended except support for the East Jerusalem Hospital Network.

State's Bureau of Near Eastern Affairs is now managing what remains, but GAO found the department hasn't finalized replacement anti-terrorism policies, hasn't decided which office will oversee future programming, and hasn't determined how components outside NEA, like the Jerusalem embassy, would mitigate terrorism risk if they take on responsibilities. Officials blamed regional conflict for delaying the policy work.

GAO recommended State finalize its anti-terrorism procedures, document risk mitigation across all relevant components, adopt mandatory anti-terrorism contract provisions, and set timelines for compliance audits. State agreed with all four recommendations.

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