Canada pledges $30M in Gaza aid, $10M for Palestinian Authority work toward statehood

“The Palestinian question is at the heart of any hope for long-term stability in the Middle East,” Foreign Affairs Minister Anita Anand told a major United Nations conference Monday in New York.

“A workable Palestinian state needs legitimate, democratic governance that serves all Palestinian people.”

The conference was convened by France and Saudi Arabia to find ways to preserve the two-state solution. Canada has for decades been among those calling for the eventual creation of a Palestinian country that would exist in peace alongside Israel.

Ottawa and other countries have increasingly expressed the concern that the Israeli government is trying to make a Palestinian state impossible. Some Israeli ministers have called for the population of Gaza to be concentrated in a small area or resettled to other countries.

Anand highlighted concerns about Palestinian governance in her remarks to dozens of her counterparts gathered in New York.

The Palestinian Authority currently controls large parts of the West Bank through the Fatah party. Hamas has full control of Gaza. Neither territory has held an election since 2006, and polls by the anti-corruption Aman Coalition think tank have found widespread concerns about corruption in both governments.

Anand said Hamas can’t have a role in governing a Palestinian state, while the Palestinian Authority must undergo “comprehensive reforms necessary to govern Gaza and the West Bank.”

She announced Canada will spend $10 million this year “to accelerate reform and capacity-building for the Palestinian Authority.”

She also announced aid funding for Palestinians in Gaza. 

“For this critical aid to reach those in need, humanitarian partners must be granted safe and unhindered access to civilians in Gaza,” Anand said.

Israeli Prime Minister Benjamin Netanyahu said Sunday that only a “minimal” amount of aid is being allowed into the territory, and rejected the assertion of multiple international organizations that starvation is happening in Gaza.

Earlier in the day, Anand said the decades-long conflict is being driven by the duelling narratives through which Israelis and Palestinians perceive the conflict, and that peace requires a shared reality.

She also called for Hamas to release its hostages and for Israel to stop “relentless settlement expansion” in the West Bank.

“Peace is not only about borders and agreements. It is also about shared stories and understanding that humanize all sides and foster trust,” Anand said.

Ottawa is co-leading an initiative with Qatar and Mexico aimed at finding ways to build that momentum.

“This moment demands political courage and resolve, and we must stand together and choose a different path, one that leads toward a sustainable and a just solution,” Anand said.

The Trump administration criticized the conference. U.S. State Department spokeswoman Tammy Bruce called it “an unproductive and ill-timed” event that amounts to a “publicity stunt” that could compromise talks for a ceasefire in Gaza.

The U.S. argued the conference will prolong the war and embolden Hamas, calling it “a slap in the face to the victims of Oct. 7.”

U.S. President Donald Trump pushed Netanyahu on Monday to allow more aid into Gaza.

Earlier Monday, Prime Minister Mark Carney said Ottawa will work with its peers on recognizing a future Palestinian state “that does not include Hamas in any role.”

At a news conference in Prince Edward Island, he accused Israel and its settlers of a “lack of respect” for “the territorial integrity of Palestine, in the West Bank.”

Carney referred to the area as Palestine instead of the “Palestinian territories,” the term that Canadian government officials almost always use.

He said Canadians “deplore the scale of the humanitarian crisis in Gaza” and also “condemned what has caused this situation. It starts with Hamas and the deplorable terrorist attacks of Oct. 7,” 2023.

The Centre for Israel and Jewish Affairs welcomed Carney’s rejection of a role for Hamas in governing a Palestinian state.

“The path forward begins with sustained pressure on Hamas to release all Israeli hostages and ensure that no actions embolden Hamas to continue its campaign of violence,” wrote CEO Noah Shack.

He added that Canada should “work with international partners to disarm Hamas and ultimately remove them from Gaza and the West Bank.”

The Trudeau government changed Canada’s policy on Palestine statehood last November, saying that Ottawa could offer recognition before peace talks conclude instead of first requiring a successful peace deal with Israel.

Carney said in June that there must be “a Zionist, if you will, Palestinian state that recognizes the right of Israel to exist.”

This report by The Canadian Press was first published June 28, 2025.