States that it shall be U.S. policy to:
(1) support a two-state solution to the Israeli-Palestinian conflict;
(2) oppose those organizations, individuals, and countries that support terrorism and violence;
(3) urge members of the international community to avoid contact with and refrain from financially supporting the terrorist organization Hamas or a Hamas-controlled Palestinian Authority (PA) until Hamas agrees to recognize Israel, renounce violence, disarm, and accept prior agreements, including the Performance-Based Roadmap to a Permanent Two-State Solution to the Israel-Palestinian Conflict (Roadmap);
(4) promote the emergence of a democratic Palestinian governing authority that denounces and combats terrorism, upholds human rights for all people, and has agreed to recognize Israel as an independent Jewish state; and
(5) continue to support assistance to the Palestinian people.
Amends the the Foreign Assistance Act of 1961 to provide assistance under such Act to the PA only during a period for which a presidential certification to Congress has determined that:
(1) no PA ministry, agency, or instrumentality is controlled by a foreign terrorist organization and no member of a foreign terrorist organization serves in a senior policy making position in a PA ministry, agency, or instrumentality;
(2) the PA has publicly acknowledged Israel's right to exist as a Jewish state, and is adhering to all previous agreements and understandings with the government of the United States, the government of Israel, and the international community, including the Roadmap; and
(3) the PA has made demonstrable progress toward purging from its security services individuals with ties to terrorism, dismantling all terrorist infrastructure and cooperating with Israel's security services, halting anti-Israel incitement, and ensuring democracy and financial transparency.
Directs the President to make and transmit recertifications to Congress every six months (except for the first recertification which must be made within 90 days of the initial certification).
States that assistance to the PA may not be provided until 15 days after the date on which the President has provided notice to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate (Committees) in accordance with specified reprogramming notification provisions under such Act. Exempts from such limitation, upon certification to Congress, assistance to:
(1) independent Palestinian elections commissions whose members do not have ties with foreign terrorist organizations; or
(2) the Office of the President of the PA, which may only be provided for non-security expenses related to facilitating a peaceful solution of the Israeli-Palestinian conflict, or for the personal security detail of the President of the PA. Requires with respect to such exempted assistance that:
(1) it be important to U.S. national security interests; and
(2) the President consults with the Committees prior to obligating funds.
Applies such assistance limitations to the unexpended balances of funds obligated under such Act to the PA prior to enactment of this Act. Requires a Government Accountability Office (GAO) report to Congress respecting auditing of assistance under such Act to the PA. Expresses the sense of Congress that the President should be guided by such assistance limitation principles and procedures in providing direct assistance to the PA under any other provision of law.