Funds as a Weapon: A Familiar Playbook
When the Palestinian finance minister issues warnings about an 'existential threat' due to Israel blocking funds, framing tax revenues as 'Israeli money,' it’s presented by some as a budgetary dispute. The New Arab reports that this withholding has plunged the PA into a financial crisis, projecting 2026 as its 'hardest year' with public debt soaring past $15.4 billion. Yet, this isn't simply about
financial management; it’s a tactic honed over decades. Records show that just after the 1993 Oslo Accords, Israel began collecting customs and other taxes on behalf of the PA, effectively controlling Palestinian revenue streams. By 2006, after Hamas won legislative elections, Israel froze these transfers entirely under the guise of an 'anti-terrorism' measure, causing salaries for 160,000 public
sector workers to halt. This move mirrored earlier pressures, like the 1970s and 80s, when economic strangulation was a tool against nascent Palestinian autonomy. This pattern of financial leverage reappeared in 2018 when the Netanyahu government reduced transfers in response to PA payments to families of political prisoners, a policy often called 'Pay-for-Slay' by Washington, while simultaneously
subsidizing illegal settlements. What they conveniently ignore is that under international law, an occupying power is responsible for the welfare of the occupied population, not for dictating their internal social support mechanisms. The current blockade, which commenced following the October 7th events, cut off an estimated 70% of the PA's total revenue, according to UN figures. This isn't aid