Bill Summary
The Partnership Fund for Peace Act of 2019 is a bill that aims to establish a fund to promote joint economic development and finance ventures between Palestinian entrepreneurs and companies and those in the United States and Israel. This fund will focus on improving economic cooperation and people-to-people peacebuilding programs, as well as fostering shared community building, peaceful coexistence, dialogue, and reconciliation between Israelis and Palestinians. The bill also emphasizes the importance of a viable Palestinian economy and the need for grassroots efforts and popular support to achieve lasting peace in the region. The fund will be governed by a Board of Governors, which will be responsible for managing and allocating funds for economic partnerships and people-to-people programs. The bill also includes limitations and oversight measures to ensure compliance with mission directives and prevent funding for terrorist organizations. The bill authorizes $50 million for each of the first 5 fiscal years to support the fund.
Possible Impacts
1. The legislation would establish a fund to promote joint economic development and finance ventures between Palestinian entrepreneurs and companies and those in the United States and Israel. This could positively impact people in the Palestinian territories by creating jobs and stimulating the economy, potentially improving their quality of life.
2. The bill would also prioritize partnerships between Israeli and Palestinian entrepreneurs and companies, potentially fostering greater understanding and cooperation between the two groups. This could have a positive impact on both Palestinians and Israelis by promoting peaceful coexistence and reconciliation.
3. The legislation would also require that all expenditures from the fund comply with mission directives and be subject to audits and investigations. This could help ensure transparency and accountability in the grantmaking and investment process, and prevent funds from being used to support individuals or groups involved in terrorist activity.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1727 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1727
To establish the Partnership Fund for Peace to promote joint economic
development and finance ventures between Palestinian entrepreneurs and
companies and those in the United States and Israel to improve economic
cooperation and people-to-people peacebuilding programs, and to further
shared community building, peaceful coexistence, dialogue, and
reconciliation between Israelis and Palestinians.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 5, 2019
Mr. Coons (for himself, Mr. Graham, Mr. Kaine, and Mr. Gardner)
introduced the following bill; which was read twice and referred to the
Committee on Foreign Relations
_______________________________________________________________________
A BILL
To establish the Partnership Fund for Peace to promote joint economic
development and finance ventures between Palestinian entrepreneurs and
companies and those in the United States and Israel to improve economic
cooperation and people-to-people peacebuilding programs, and to further
shared community building, peaceful coexistence, dialogue, and
reconciliation between Israelis and Palestinians.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Partnership Fund for Peace Act of
2019''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Economic development in conflict settings has been
shown to support stabilization by empowering entrepreneurs,
growing the middle class, and mitigating unemployment.
(2) In 2018, unemployment in the Palestinian territories
was 32.4 percent, reaching 53.7 percent in Gaza and 18 percent
in the West Bank. GDP growth in the Palestinian territories
declined from 2.7 percent in 2017 to 2 percent in 2018, and it
is projected to further decline to between 1.7 and 1.9 percent
in 2019 and 2020.
(3) Increased economic activity and projects to improve the
quality and conditions of life for the Palestinians will help
create a viable Palestinian economy.
(4) Although economic development is an important tool for
stabilizing conflict-prone settings and establishing
connections between communities, economic development by itself
will not lead to lasting peace. People-to-people peacebuilding
programs further advance reconciliation efforts by promoting
greater understanding, mutual trust, and cooperation between
communities.
(5) While the United States and its international allies
continue to support diplomatic and political negotiations
between the representatives of the parties to the Israeli-
Palestinian conflict, such efforts require broad popular
support among the people on the ground to succeed.
(6) Achieving sustainable, high-level agreements for
lasting peace in the Middle East must come through, and with
the support of, the people who live there.
(7) Economic initiatives and people-to-people peacebuilding
programs can help millions of ordinary Israelis and
Palestinians affected by the ongoing conflict in the Middle
East.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) building a viable Palestinian economy is central to the
effort to preserve the possibility of a 2-state solution;
(2) strengthening engagement between the Palestinian
territories, the United States and Israel in the areas of
economic development and people-to-people peacebuilding
programs will--
(A) increase the bonds of friendship and
understanding between the people living in the
Palestinian territories and the people of the United
States and Israel; and
(B) advance the state of research and development
in multiple sectors to the benefit of all parties;
(3) cooperation between the business sectors of the
Palestinian territories, the United States and Israel will
benefit the Palestinian, American, and Israeli people and
should be encouraged; and
(4) United States and international support for grassroots,
people-to-people efforts aimed at shared reconciliation and
fostering tolerance can help counter extremist propaganda and
the growing issue of incitement.
SEC. 4. PARTNERSHIP FUND FOR PEACE.
(a) Establishment.--
(1) In general.--The Administrator of the United States
Agency for International Development, in consultation with the
Secretary of State and the Secretary of the Treasury, shall
establish the Partnership Fund for Peace (referred to in this
section as the ``Fund''), which--
(A) shall be funded with amounts appropriated
pursuant to section 5; and
(B) managed by the Administrator of the United
States Agency for International Development.
(2) Contributions.--The Administrator of the United States
Agency for International Development, in consultation with the
Secretary of State and the Secretary of the Treasury, shall
seek additional contributions for the Fund from the
international community, including countries in the Middle East
and Europe.
(b) Governance.--
(1) Board of governors.--
(A) Appointment.--Except as provided in
subparagraph (D), the Fund shall be governed by a Board
of Governors, which shall be composed of 5 private,
United States citizens or legal permanent residents,
who shall be appointed by the Administrator of the
United States Agency for International Development, in
consultation with the Secretary of State, the Speaker
of the House of Representatives, the minority leader of
the House of Representatives, the majority leader of
the Senate, and the minority leader of the Senate.
(B) Qualifications.--
(i) General experience.--Members of the
Board of Governors shall be selected from among
people who have demonstrated experience and
expertise in the affairs related to Israel and
the Palestinian territories.
(ii) Business experience.--Not fewer than 2
members of the Board of Governors shall have--
(I) demonstrated experience and
expertise in international and
particularly emerging markets
investment activities, such as private
equity or venture capital investment,
banking, finance, strategic business
consulting, or entrepreneurial business
creation; and
(II) backgrounds in priority
business sectors of the Palestinian
economy.
(iii) Conflict mitigation experience.--Not
fewer than 2 members of the Board of Governors
shall have demonstrated experience and
expertise in conflict mitigation and people-to-
people programs.
(iv) USAID official.--The Administrator of
the United States Agency for International
Development (USAID) shall appoint 1 USAID
official as a member of the Board of Governors.
(C) Responsibilities.--The Board of Governors
shall--
(i) determine the amount annually allocated
from the Fund for each Technical Board; and
(ii) approve the Technical Boards'
recommendations, as appropriate.
(D) International donor seats.--With the approval
of the existing Board of Governors, the Administrator
may appoint up to 2 additional members to the Board who
shall--
(i) represent international organizations
or foreign governments that have donated to the
Fund; and
(ii) meet the qualifications set forth in
subparagraph (B)(i).
(E) Technical boards.--
(i) Establishment.--The Board of Governors
shall establish--
(I) a Business and Economic
Development Technical Board; and
(II) a People-to-People Programs
Technical Board.
(ii) Appointments.--Members of the
technical boards established pursuant to clause
(i) shall be appointed by the Administrator of
the United States Agency for International
Development.
(iii) Investment approval and
recommendations.--The technicalboards
established pursuant to clause (i)--
(I) may approve investments of Fund
assets up to $250,000; and
(II) may recommend investments of
Fund assets greater than $250,000,
which shall be subject to the approval
of the Board of Governors.
(iv) Staff.--Each technical board
established pursuant to clause (i) shall
consist of a Secretariat, which shall be
staffed by individuals with demonstrated
experience and expertise relevant to the
technical board on which they sit.
(c) Purposes.--The purposes of the Fund are--
(1) to promote the private sector in the Palestinian
territories through facilitating and financing between small-
and medium-sized Palestinian entrepreneurs and companies and
those in the United States, Israel, and other countries to
improve the Palestinian private sector through economic
cooperation in research and development;
(2) to improve the quality of life, stimulate the economy,
and advance security by creating private sector jobs for
Palestinians in the Palestinian territories and furthering the
development of a Palestinian middle class; and
(3) to further shared community building, peaceful
coexistence, dialogue, and reconciliation between Israelis and
Palestinians by financing people-to-people peacebuilding
programs.
(d) Uses of Funds.--Amounts deposited into the Fund may be used--
(1) to carry out the purposes set forth in subsection (c);
and
(2) to pay for the administrative expenses of operating the
Fund.
(e) Economic Partnerships.--
(1) In general.--All economic partnerships requesting
support from the Fund shall include a Palestinian entrepreneur
or company in the Palestinian territories and an entrepreneur
or company from the United States or Israel.
(2) Tripartite agreements.--If an entrepreneur or company
outside of the United States or Israel desires to partner with
a Palestinian entrepreneur or company, a tripartite agreement
shall be established that includes an entrepreneur or company
from the United States or Israel.
(3) Priority.--The Board of Governors and the technical
boards established pursuant to subsection (b)(1)(E)(i) should
prioritize partnerships between Israeli and Palestinian
entrepreneurs and companies.
(4) Funding requirement.--During each fiscal year, not less
than 25 percent of the funding allocated from the Fund for
economic partnerships shall be awarded to partnerships that
include--
(A) Palestinian entrepreneurs or companies based in
the Palestinian territories; and
(B) Israeli entrepreneurs or companies based in
Israel.
(f) People-to-People Partnerships.--All people-to-people
partnerships requesting support from the Fund shall include--
(1) a Palestinian nonprofit organization, an Israeli
nonprofit organization, or an international nonprofit
organization that brings Palestinians and Israelis together for
shared community building, peaceful coexistence, dialogue, and
reconciliation; or
(2) nonprofit organizations that further shared community
building, peaceful coexistence, dialogue, and reconciliation
between Arab and Jewish citizens of Israel.
(g) Alternative Funding Streams.--The Board of Governors should
explore initiatives to promote long-term financial sustainability of
the Fund through revenue accrued by successful ventures.
(h) Limitations, Vetting, and Oversight.--
(1) Limitations.--None of the funds made available under
this Act may be made available for--
(A) financial assistance to national governments;
(B) assistance for any individual or group that the
Administrator of the United States Agency for
International Development, in consultation with the
heads of other relevant Federal agencies, determines to
be--
(i) involved in, or advocating, terrorist
activity; or
(ii) a member of a foreign terrorist
organization (as designated pursuant to section
219 of the Immigration and Nationality Act (8
U.S.C. 1189)); or
(C) assistance for the Palestinian Authority,
Hamas, or the Palestine Liberation Organization.
(2) Applicable laws.--Assistance from the Fund shall be
subject to all relevant laws relating to United States
Government assistance, including to the Palestinians.
(3) Compliance with mission directives.--All expenditures
from the Fund shall follow the mission directives applicable to
the West Bank and Gaza that have been issued by United States
Agency for International Development Mission Director or
Contracting Officer.
(4) USAID inspector general.--All operations and
expenditures of the Fund shall be subject to audits,
investigations, and inspections conducted by the Office of the
Inspector General at the United States Agency for International
Development.
(5) GAO.--All operations and expenditures of the Fund shall
be subject to assessment by the Government Accountability
Office.
(i) Annual Report.--
(1) In general.--Not later than 90 days after the end of
the fiscal year during which the Fund is established and
annually thereafter, the Administrator of the United States
Agency for International Development shall submit a written
report to the Committee on Foreign Relations of the Senate, the
Committee on Appropriations of the Senate, the Committee on
Foreign Affairs of the House of Representatives, and the
Committee on Appropriations of the House of Representatives
that describes the extent to which the Fund, and United States
contributions to the Fund, have contributed--
(A) to promoting and supporting joint economic
development;
(B) to integrating the Palestinian economy into the
international business system; and
(C) to furthering contact, cooperation, dialogue,
and reconciliation between Israelis and Palestinians.
(2) Matters to be included.--Each report under paragraph
(1) shall include--
(A) information regarding--
(i) contributions pledged to, contributions
(including donations from the private sector)
received by, and projects funded by the Fund;
and
(ii) the mechanisms established for
transparency and accountability in the grant
making and investment process;
(B) a description of the Fund's operations,
activities, budget, receipts, and expenditures for the
preceding 12-month period, including an audited report
of the Fund's finances, including statements of
financial position, operations, and cash flows, in
accordance with generally accepted government auditing
standards prescribed by the Comptroller General of the
United States;
(C) insights gleaned from improvements to the
efficacy of people-to-people relationships;
(D) a description of potential strategies for
achieving sustainability for civic institutions that
the Fund creates or supports, including novel financing
mechanisms; and
(E) a description of the process for vetting and
oversight of entities eligible for support from the
Fund to ensure compliance with subsection (h).
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated $50,000,000
for each of the first 5 fiscal years beginning after the date of the
enactment of this Act.
(b) Availability.--Amounts appropriated pursuant to subsection (a)
shall be used for United States contributions to the Partnership Fund
for Peace established pursuant to section 4(a).
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