Bush OKs $20 Million in Aid to Palestinians

President Bush approved $20 million in direct aid to the Palestinian Authority on Wednesday to help it pay debts to Israeli utilities, after key lawmakers objected to plans to use the money for Palestinian elections and salaries.

Bush’s decision to waive restrictions on direct U.S. aid to the Palestinian Authority is part of what the White House called a renewed push for peace after the death of longtime Palestinian leader Yasser Arafat.

The State Department had initially wanted the money to directly support the Jan. 9 election to replace Arafat as Palestinian Authority president and to help pay salaries.

But pro-Israel lawmakers with close ties to the White House objected, arguing that adequate safeguards had yet to be put in place to ensure that the Palestinian Authority would spend the money properly.

By providing the authority with money for utilities, the Bush administration is indirectly freeing funds to help cover the cost of the election, officials said.

Israel receives about $3 billion a year from Washington. The $20 million for the Palestinian Authority will come from a $75-million package of indirect support approved by Congress.