TEL AVIV, July 8, 2026 (WAFA) – The General Assembly of the Israeli Knesset approved Wednesday in its first reading a draft bill that allows for the freezing of additional funds belonging to the Palestinian National Authority, Israeli newspaper Haaretz reported.

The bill is to be referred back to the Foreign Affairs and Defense Committee to complete deliberations in preparation for voting on it in the second and third readings.

It added that the bill, promoted by Knesset Member Moshe Passal of the Likud party, stipulates the freezing of an annual amount equivalent to the funds transferred by the Palestinian National Authority to the Gaza Strip in the preceding year.

According to the text of the project, these funds will be used to pay compensation to those affected by an "act of terrorism originating from the Gaza Strip." The draft bill was supported by 12 Knesset members, with no opposition.

Israel is withholding approximately 14 billion shekels in customs revenues on imports destined for Palestinians (clearance funds), under the pretext that these funds are used to "encourage and assist terrorism."

The funds withheld by Israel accumulate monthly in the treasury of the Israeli Ministry of Finance, while the Palestinian government is forced to take additional austerity measures to confront the continuous financial deterioration that has lasted for nearly three years.

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