Skip To Content
JEWISH. INDEPENDENT. NONPROFIT.
Breaking News

Israel Releases $100M in Palestinian Tax Cash

Palestinian public sector workers received their salaries on Tuesday, Palestinian officials said, in a sign that Israel had backed down from a threat to impose sanctions as peace talks began to collapse last month.

Israel had said on April 10 it would withhold funds after Palestinian President Mahmoud Abbas signed a series of international human rights conventions he hoped would allow Palestinians to eventually challenge Israel at the United Nations, which recognized Palestine as a non-member state in 2012.

U.S.-backed Israeli-Palestinian peace negotiations ended on April 29 with no breakthrough.

Palestinian officials said the payment reflected Israel’s decision to transfer more than $100 million in customs duties it collects on goods headed to Palestinian-run areas through border crossings it controls.

The money accounts for about two-thirds of the Palestinian budget and is key to keeping its large public sector functioning and maintaining stability in the Israeli-occupied West Bank.

Israel had said it would dock payment of over $100 million it said the Palestinian government owed it in utility bills.

Israeli officials could not be immediately reached for comment during a national holiday.

Speaking last week, Palestinian Prime Minister Rami Hamdallah told reporters Israel would be paying the near usual monthly amount of 450 million shekels ($130.3 million) and only deducting 20 million shekels ($5.8 million) as part of a loan taken out by a previous Palestinian government.

Palestinians say their economy cannot reach its full potential while it remains under partial Israeli control. They seek an independent state in Gaza, East Jerusalem and the West Bank.

Israeli, Palestinian and U.S. officials say they hope to revive peace talks given the right conditions.

Israel had said on April 10 it would withhold funds after Palestinian President Mahmoud Abbas signed a series of international human rights conventions he hoped would allow Palestinians to eventually challenge Israel at the United Nations, which recognized Palestine as a non-member state in 2012.

U.S.-backed Israeli-Palestinian peace negotiations ended on April 29 with no breakthrough.

Palestinian officials said the payment reflected Israel’s decision to transfer more than $100 million in customs duties it collects on goods headed to Palestinian-run areas through border crossings it controls.

The money accounts for about two-thirds of the Palestinian budget and is key to keeping its large public sector functioning and maintaining stability in the Israeli-occupied West Bank.

Israel had said it would dock payment of over $100 million it said the Palestinian government owed it in utility bills.

Israeli officials could not be immediately reached for comment during a national holiday.

Speaking last week, Palestinian Prime Minister Rami Hamdallah told reporters Israel would be paying the near usual monthly amount of 450 million shekels ($130.3 million) and only deducting 20 million shekels ($5.8 million) as part of a loan taken out by a previous Palestinian government.

Palestinians say their economy cannot reach its full potential while it remains under partial Israeli control. They seek an independent state in Gaza, East Jerusalem and the West Bank.

Israeli, Palestinian and U.S. officials say they hope to revive peace talks given the right conditions.

Israel had said on April 10 it would withhold funds after Palestinian President Mahmoud Abbas signed a series of international human rights conventions he hoped would allow Palestinians to eventually challenge Israel at the United Nations, which recognized Palestine as a non-member state in 2012.

U.S.-backed Israeli-Palestinian peace negotiations ended on April 29 with no breakthrough.

Palestinian officials said the payment reflected Israel’s decision to transfer more than $100 million in customs duties it collects on goods headed to Palestinian-run areas through border crossings it controls.

The money accounts for about two-thirds of the Palestinian budget and is key to keeping its large public sector functioning and maintaining stability in the Israeli-occupied West Bank.

Israel had said it would dock payment of over $100 million it said the Palestinian government owed it in utility bills.

Israeli officials could not be immediately reached for comment during a national holiday.

Speaking last week, Palestinian Prime Minister Rami Hamdallah told reporters Israel would be paying the near usual monthly amount of 450 million shekels ($130.3 million) and only deducting 20 million shekels ($5.8 million) as part of a loan taken out by a previous Palestinian government.

Palestinians say their economy cannot reach its full potential while it remains under partial Israeli control. They seek an independent state in Gaza, East Jerusalem and the West Bank.

Israeli, Palestinian and U.S. officials say they hope to revive peace talks given the right conditions.

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

Now more than ever, American Jews need independent news they can trust, with reporting driven by truth, not ideology. We serve you, not any ideological agenda.

At a time when other newsrooms are closing or cutting back, the Forward has removed its paywall and invested additional resources to report on the ground from Israel and around the U.S. on the impact of the war, rising antisemitism and the protests on college campuses.

Readers like you make it all possible. Support our work by becoming a Forward Member and connect with our journalism and your community.

Make a gift of any size and become a Forward member today. You’ll support our mission to tell the American Jewish story fully and fairly. 

— Rachel Fishman Feddersen, Publisher and CEO

Join our mission to tell the Jewish story fully and fairly.

Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines. You must credit the Forward, retain our pixel and preserve our canonical link in Google search.  See our full guidelines for more information, and this guide for detail about canonical URLs.

To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.