Congress blocks $86m in aid to PA

WASHINGTON - The Bush administration's pledge to transfer $86 million to Palestinian Authority Chairman Mahmoud Abbas was blocked by Congress. The U.S. administration had publicly pledged the funds, but a number of congressmen are skeptical about the funding.

Congresswoman Nita Lowey, Democrat from New York, who also heads the foreign appropriations subcommittee, informed the State Department ten days ago that the funding required clarifications.

The freeze on the transfer of funds went into effect even before Fatah and Hamas signed the Saudi-brokered Mecca agreement on a national unity government.

On Tuesday, Haaretz learned from a source in Lowey's office that skepticism regarding the wisdom of transferring funds has only intensified as a result of the agreement.

Sources in the American capital said yesterday that it is possible the administration is waiting for a clearer picture of the new Palestinian leadership.

"This could actually be convenient for the administration," one of the sources said, "because it is not the one that has to freeze the funding - it's being done by Congress.