"Let me be utterly clear about our policy towards Hamas," Assistant Secretary for the Near East Anne Patterson told a House hearing.
"No US governmental money will go into any government that includes Hamas until Hamas accepts the Quartet conditions. And that's renouncing violence, recognizing previous agreements and most explicitly recognizing Israel's right to exist."
In a surprise deal Palestinian leaders from the West Bank and the Hamas-run Gaza Strip last week agreed to work together after years of bitter rivalry.
In an address to PLO leaders on Saturday, Palestinian president Mahmud Abbas said the new government, which will be made up of political independents, would recognize Israel, reject violence and abide by existing agreements.
Under tomorrow's PLO-Hamas accord, Abbas would head an "independent government" of technocrats, to be formed within five weeks.
That new interim administration would be charged with holding parliamentary and presidential elections within six months of taking office.
Sub committee chairwoman Ileana Ros-Lehtinen said the Palestinian reconciliation deal had "major implications" for the fiscal year 2015 budget, which begins in October.
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