Officials in Jerusalem were surprised by a report in the L.A. Times Monday that the Obama administration has asked Congress to amend United States law to enable the Palestinian Authority to receive federal aid even if Hamas joins a unity coalition. "Every step that strengthens Hamas only distances peace. In the event that the report is true, it is painful and worrying," a political source in Jerusalem said Monday.

Hamas, which seized control of Gaza from PA President Mahmoud Abbas' forces in a bloody 2007 coup, has been deemed a terrorist organization by the U.S. and therefore cannot not legally receive U.S. government aid.