It is a reversal of the Donald Trump administration’s cutoff and a key element of its new support for a two-state solution to the decades-old conflict agreed to by Israelis and Palestinians.
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Palestine is recognized officially as the State of Palestine by the United Nations and other entities.
It is a de jure sovereign state in Western Asia claiming the West Bank (bordering Israel and Jordan) and Gaza Strip (bordering Israel and Egypt) with Jerusalem as the designated capital, although its administrative center is currently located in Ramallah.
The entirety of territory claimed by the State of Palestine has been occupied since 1948, first by Egypt and Jordan and then by Israel after the Six-Day War in 1967.