The Gaza Strip and the West Bank are two Palestinian territories that were part of Mandate Palestine and were captured by Israel during the Six-Day War in 1967. The West Bank is a larger area of land located within the country of Israel, stretching across the eastern border of Israel along the west banks of the Jordan River and most of the Dead Sea. The holy city of Jerusalem is considered by international law as part of the West Bank, with East Jerusalem being claimed as the capital by both Israelis and Palestinians. The Gaza Strip is a smaller area of land bounded by the Mediterranean Sea.

The territories have been the subject of conflict for over a hundred years, dating back even before Israel became a country. Since the Six-Day War, the tension between Israelis and Palestinians living in the territories has been constant, often ending in violence. Palestinians living in the territories are under military occupation and are subject to Israeli restrictions, often depending on aid.

The international community regards the Palestinian territories, meaning the West Bank including East Jerusalem and the Gaza Strip, as territories occupied by Israel. Israel has withdrawn its military forces from the Gaza Strip, but it continues to be designated the occupying power in the Gaza Strip by the United Nations, the United States, and various human rights organizations. Palestinians in the West Bank are subject to Jordanian and Mandatory statutes in effect before 1967, military ordinances enacted by the Israeli military commander in the West Bank, and, in the relevant areas, Palestinian Authority (PA) law. Israelis living in the West Bank are subject to Israeli laws and Israeli legislation and military ordinances enacted by the military commanders, whereas Palestinians living in the West Bank are subject primarily to Israeli military ordinances.

The population of the West Bank and Gaza is almost completely Palestinian Arab, with the bulk of them being Sunni Muslims. In addition to the Palestinian population, approximately 214,000 Jewish settlers live in the West Bank and Gaza. The population growth rate is among the highest in the world.

In the West Bank and Gaza, USAID empowers Palestinians to build thriving communities, promote inclusive development, and advance a two-state solution.