The situation in the Palestinian Territories, particularly in Gaza, remains bleak, especially since public sector employees went on strike on September 2. What is worrying about the strike is that it is strengthening the factional divisions and infighting among Palestinians. The security situation for average Palestinians is also affected, as the security forces of the Palestinian Authority are not receiving regular salaries—and in fact have not been since March 2006.
The United States Congress has provided in the fiscal year 2006 "Foreign Operations, Export Financing and Related Programs Appropriations Act" $150 million in Economic Support Funds (ESF) for US aid programs in the West Bank and Gaza Strip. President Bush, with help from Congress, provided $50 million in direct assistance to the Palestinian Authority to rehabilitate roads, water facilities, schools and health clinics in Gaza, to help ease the transition after the Israeli disengagement.
The direct aid came out of the $75 million ESF appropriation for the fiscal year 2005. The "Fact Sheet on Palestinian Assistance" by the US State Department states that since the formation of a Hamas-led Palestinian Authority (PA) government, the US has provided a total of $300 million in humanitarian and other aid to the Palestinians, of which $245 million was set aside for basic human health needs, $42 million for promoting democratic alternatives to Hamas, and $13 million in project support costs and oversight activities.
According to Secretary of State, Condoleezza Rice, "the United States of America is not going to stop giving money for the immunisation of Palestinian children... It would be against our values to do that. So, for the most vulnerable and innocent populations, we will find a way to respond to those humanitarian needs."
The European Union (EU) has spearheaded international efforts to establish a Temporary International Mechanism (TIM). Through a World Bank account, donations or "social allowances" may be channelled to Palestinian health workers and other needy families, but the World Bank account reportedly will not pay the salaries of most other PA civil servants. Although the US supports the funding plan, it has said it will not pay into it. Despite support for a TIM, there is no current consensus on how cash payments are to be delivered to needy Palestinians, nor is there a procedure for determining which families qualify as needy recipients.
On 23 June 2006 the EU announced the contribution of €105 million to TIM for