Obama Administration: U.S. Aid to Palestinian Authority Critical to Mideast Stability

Statement comes after U.S. House backs resolution to consider suspending aid to PA in light of reconciliation deal with Hamas.

The Obama administration on Tuesday defended the U.S. aid to the Palestinian Authority, telling Congress the assistance is critical to peace and stability in the Mideast.

Testifying before a House panel, officials from the State Department said Tuesday that helping to build Palestinian governmental institutions and an economy is essential to the security of both Israel and the Palestinians.

Obama and Abbas - AP - June 9, 2010

Last week, the House overwhelmingly backed a resolution calling on the Obama administration to consider suspending aid to the Palestinian Authority in light of the deal between the government and Hamas, considered a terrorist group by Israel and the U.S.

Deputy Assistant Secretary of State Jacob Walles said the administration will closely monitor whether a new government emerges and will reassess the aid.