The current debate over a cutoff of aid to the Palestinian Authority is a classic case of good news and bad news coming together in the same package.

The good news is that the United States appears to be holding firm on its refusal to keep money flowing to the PA once the recently elected Hamas terrorists are in charge.

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Though many thought Washington would quickly fold on this issue, the administration is sticking to its hard line against sending a cent to Hamas. And Congress is poised to enact aid restrictions that may act as a break on any State Department impulse to weaken on the issue.

But along with this comes the bad news. The United States and the European Union (which is also considering an aid cutoff to the PA) will be diverting a lot of the money that supported the PA kleptocracy to humanitarian aid. That way, it is reasoned, innocent Palestinians won’t be forced to suffer from the crimes of their new masters.

That rationale sounds compassionate and logical. The only problem is that the humanitarian group that will receive the lion’s share of the aid is one of the most thoroughly politicized and terrorist-infiltrated organizations in the world: the United Nations Relief and Works Agency.

For 56 years, UNRWA has been the symbol of the world’s double standard about the war on Israel by the Arab world.

While the United Nations deals with the rest of the world’s refugees with a single agency – the UN High Commission for Refugees – the Palestinian refugees have their very own agency – UNRWA – with a particular mission.

Unfortunately, unlike virtually every other refugee aid group (including those that dealt with the hundreds of thousands of Jews who fled Arab lands in the aftermath of Israel’s independence), UNRWA’s primary mission has never been to help the Palestinians deal with the reality of the post-1948 world. Resettling the Palestinians wasn’t the point. UNRWA exists to keep the Palestinians alive exactly where they are, so they can serve as justification for continued conflict with Israel.

As detailed in a new Jewish Telegraphic Agency series of reports on the topic, UNRWA’s record is one of complicity not only with the political ends of the Palestinian movement, but with its violent tactics as well.

Many of UNRWA’s employees are members not only of mainstream Palestinian terror factions such as Fatah, but of the Islamist Hamas group as well. UNRWA suffered a major embarrassment when its former director, the Norwegian bureaucrat Peter Hansen, admitted as much two years ago, saying it was no big deal. Indeed, in the recent Palestinian election, a number of UNRWA workers were Hamas parliamentary candidates.

Of course, why should Hansen – who helped spread the lie that Israeli forces had committed a massacre of civilians in the Jenin refugee camp in 2002 – worry about terrorist infiltration?

The man lied not only about the casualties of Jenin, in which Hamas and Fatah gunmen fought pitched battles against Israelis who were seeking to destroy terror bases after Palestinian suicide bombings, but also told tales about the fact that this and other UNRWA camps were, in fact, longstanding UN-subsidized strongholds of Palestinian terror groups.

Hansen and UNRWA have used the prestige of their “humanitarian” perch to routinely bash Israel for its attacks on the camps, but almost never mention that Israel is reacting to Palestinian terror. But again, this is because the UN has always turned a blind eye to the fact that the camps under its jurisdiction were the places where terrorist atrocities are planned and launched.

UNRWA employees have used its facilities to shield terrorists from Israel, and even used its ambulances to transport both the killers and the weapons. Hamas also operates its new television station from the relative safety of a mosque in the UNRWA Jabalya camp.

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