Yes it would, and I predict that if it happens, we will continue aid.
Actually Fatah is not a designated terror organization, al Aska Martyrs brigades, their "military" arm is, thus we deal with Fatah.
If you recall, before the Gaza takeover, GWB was talking about funneling aid to the PLO (5 terror groups among their 2 dozen or so members) as a way of getting funds to Fatah, the largest PLO member. In similar manner the State Dept. was talking about the military side of Hamas, as distinct from the political. Just as Condi claimed during the elections that those running on the Hamas slate were businessmen, not terrorists.
If it comes to that we'll use that distinction, that the Hamas legislative members aren't terrorists, thus we can provide aid.
Underlying all of this is the fact that GWB is determined to see a palestinian state by the end of his term, and he'll do what needs to be done, largely ignoring palestinian behaivior, to get one.
Unfortunately so is Olmert; Israel needs Netanyahu (sp?), Now.