Obama administration defends aid to Palestinians

WASHINGTON — The Obama administration is defending 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.

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.