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Palestinian Authority Warns Of ‘Dangerous’ Consequences After Israel Slashes Funds Over Terror Payments

A Palestinian Authority spokesman warned of “dangerous consequences on all levels” after the Israeli cabinet voted to withhold about $140 million in taxes and tariffs it distributes to Ramallah due to stipends paid by Mahmoud Abbas’ government to terrorists and their families. “The [PA] views the approval of the decision to deduct funds as a robbery of the Palestinian people’s money and as a unilateral violation of the agreements signed between the two sides,” top Abbas aide Nabil Abu Rudaina wrote in a statement. Other high-ranking Palestinian officials described Israel’s move as “piracy,” “collective punishment,” and an attempt to “destroy the [PA] in partnership with the [United States] administration of [President] Donald Trump.” According to the Israeli Prime Minister’s Office, Jerusalem will initially cut-off NIS 502,697,000 in twelve monthly increments, although some estimates peg the total amount the PA allocates to its controversial “pay-for-slay” policy at 2.5 times that and the cabinet made clear the figure could be revised upwards. In accordance with the 1993 Oslo Accords, Jerusalem collects around $120 million per month in customs duties on products destined for Palestinian cities that transit through Israeli ports. The withholding of the funds—based on a law passed by parliament last year—purportedly is opposed by much of Israel’s defense establishment, which fears a budgetary shortfall in the PA could lead to diminished security cooperation and the destabilization of the West Bank. Moreover, military officials reportedly told cabinet ministers that Abbas could be forced to end the monthly transfer of nearly $100 million to the Hamas-ruled Gaza Strip, potentially leading to further unrest on that front as well.