US Defense Secretary Leon Panetta has criticized US lawmakers for suspending $200 million in aid slated to fund development projects in the Palestinian territories, reported Voice of America. Panetta said Monday at a news conference in Tel Aviv with Israeli Defense Minister Ehud Barak that this is “no time to withhold those funds.” He said it is a “critical” moment in the region, as US officials continue to urge Palestinians and Israelis to negotiate a peace deal. The US State Department said the Obama administration is in “intensive” discussions with key lawmakers who put a hold on the money. The Palestinian government relies on foreign donors to help make up its yearly budget. Officials from the US government's foreign aid agency (USAID) confirmed that some programs were affected by the congressional hold, but they did not give details. Palestinian officials denounced the move as counterproductive to peace, saying it would not deter them from seeking full UN membership for a Palestinian state. US lawmakers froze the money in response to the Palestinian Authority's bid for statehood recognition over the objections of the US and Israel, who say direct negotiations are the only path to Mideast peace.
