"Under the Obama and Trump Administrations, the executive branch and Congress have taken significant measures to reduce and delay U.S. aid to the Palestinians. Questions surround the future of this aid as policymakers try to evaluate whether it is effective in accomplishing its specific programmatic purposes, as well as in improving regional stability and U.S. political influence. Some observers, including Israelis, express concern about various aspects of the aid while also voicing caution that more major changes could affect stability and Israeli security. Reductions and delays in aid appear to have come partly from U.S.-Palestinian political tension connected with the Trump Administration's policy on Jerusalem. Additionally, in March 2018 Congress enacted the Taylor Force Act (Title X of P.L. 115-141). This law augments existing legislative provisions to suspend U.S. bilateral economic assistance for the Palestinian Authority (PA) unless and until Palestinian officials cease certain payments deemed under U.S. law to be 'for acts of terrorism.'"
CRS Report for Congress, RS22967