June 27, 2024

Casten, DeLauro, 50+ Members Urge Blinken, World Bank to Address Economic Crisis in the West Bank

Washington, D.C. — Today, U.S. Congressman Sean Casten (IL-06) and Congresswoman Rosa DeLauro (CT-03) led over 50 colleagues in letters to Secretary of State Antony Blinken and World Bank President Ajay Banga urging them to address the severe economic situation in the West Bank.

A copy of the letter sent to Sec. Blinken, signed by 56 Members of Congress, can be found HERE. A copy of the letter sent to World Bank President Banga, signed by 53 Members of Congress, can be found HERE.

In accordance with a 1994 protocol on economic relations annexed to the Oslo Accords, Israel collects tax revenues on behalf of Palestinians and transfers them to the Palestinian Authority (PA). Since the beginning of the war, caused by the October 7th terrorist attacks by Hamas, Israel has repeatedly suspended these transfers, which account for nearly two-thirds of the PA’s annual budget.

“We commend the Biden administration for its efforts to stabilize the economy in the West Bank and are encouraged by reports that you are seeking a solution with an alternate third country to secure the release of the PA’s tax revenues,” the lawmakers wrote to Sec. Blinken. “We urge you to continue working to find a solution to transfer these funds. Additionally, we strongly implore you to exert the necessary pressure on the Israeli government to prevent the PA’s economic collapse.”

In addition to the repeated suspension of payments, Israel has threatened to disrupt Palestinian financial institutions and denied work permits to Palestinians living in the West Bank with jobs in Israel, leading to a 33% increase in unemployment in the West Bank and putting the PA at risk of economic collapse. This instability further jeopardizes regional security.

“The World Bank plays a crucial role in promoting shared economic prosperity by investing in infrastructure to help developing regions,” the lawmakers wrote to World Bank President Banga. “... While we will work diligently to ensure that Israel allows funding to flow to the West Bank, we urge the World Bank to use every available tool, including but not limited to grants, co-financing loans from development partners, and investment guarantees, to stabilize the West Bank economy, reduce widespread poverty, and alleviate suffering.”

In addition to Reps. Casten and DeLauro, the letter to Sec. Blinken was signed by Reps. Amo, Balint, Beyer, Blumenauer, Bonamici, Brownley, Carbajal, Casar, Castro, Chu, Connolly, Dean, Deluzio, DeSaulnier, Dingell, Doggett, Escobar, Evans, Foster, Frost, Garcia (TX), Green (TX),  Grijalva, Hayes, Huffman, Jackson (IL), Jacobs, Jayapal, Johnson (GA), Kaptur, Kildee, Larson, Lee (CA), Lynch, Magaziner, McCollum, McGovern, Norton, Ocasio-Cortez, Peters, Pingree, Pocan, Quigley, Sánchez, Schakowsky, Swalwell, Takano, Thompson (MS), Tokuda, Trahan, Velázquez, Watson Coleman, Wexton, Williams (GA).

In addition to Reps. Casten and DeLauro, the letter to World Bank President Banga was signed by Reps. Amo, Balint, Beyer, Blumenauer, Bonamici, Brownley, Carbajal, Casar, Castro, Chu, Connolly, Dean, Deluzio, DeSaulnier, Dingell, Doggett, Escobar, Evans, Frost, Garcia (TX), Green (TX), Grijalva, Hayes, Huffman, Jackson (IL), Jacobs, Jayapal, Johnson (GA), Kaptur, Kildee, Larson, Lee (CA), Lynch, Magaziner, McCollum, McGovern, Norton, Ocasio-Cortez, Peters, Pingree, Pocan, Quigley, Sánchez, Schakowsky, Swalwell, Takano, Thompson (MS), Tokuda, Velázquez, Watson Coleman, Williams (GA).

The letters have been endorsed by J Street.

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