From the Document: "The Palestinians and their ongoing disputes and interactions with Israel raise significant issues for U.S. policy (see 'U.S. Policy Issues and 2021 Aid Announcements' below). After a serious rupture in U.S.-Palestinian relations during the Trump Administration, the Biden Administration has started reengaging with the Palestinian people and their leaders, and resuming some economic development and humanitarian aid--with hopes of preserving the viability of a negotiated two-state solution. In the aftermath of the May 2021 conflict involving Israel and Gaza, U.S. officials have announced additional aid (also see below) and other efforts to help with recovery and engage with the West Bank-based Palestinian Authority (PA), but near-term prospects for diplomatic progress toward Israeli-Palestinian peace reportedly remain dim. Palestinian leaders have lamented some Arab states' recent normalization of relations with Israel because it could undermine past Arab efforts to link such improvements with addressing Palestinian negotiating demands."
CRS In Focus, IF10644
Congressional Research Service: https://crsreports.congress.gov/