US President Joe Biden's administration was looking for solutions to financially support the Palestinian Authority, the Wall Street Journal reported Sunday.
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The report came amid warnings from officials in Ramallah that the PA was on the verge of running out of money, which could jeopardize its ability to govern the Gaza Strip once Israel's war against Hamas is over, part of a day-after scenario raised by the United States and others.
Video: Yahyah Sinwar flees in the tunnel at the start of war / Credit: IDF
US reduction in aid and the suspension of Israeli tax revenues after the Hamas-led Oct. 7 attack has put the PA "on the verge of financial collapse", a senior Palestinian official told the Wall Street Journal.
Although often criticized on issues such as corruption, the PA was described by one US official as "an essential partner and we must support it. We also encourage it a lot to reform and we help it do that," adding that "If the Palestinian Authority collapses for any reason, it's a catastrophe for security, for the Palestinians, for the Israelis and for the whole region."
The Biden administration would first need to get around a law that prevents it from contributing directly to the PA, due to Ramallah's pay-for-slay policy which provides stipends for terrorists and their families.
According to the WSJ report, the Biden administration was urging its allies to give more funding to the PA in order for the authority to continue operating and paying salaries.
Palestinian officials increasingly warned that the PA could run out of money to pay salaries and provide essential government services as early as the end of February, US officials told WSJ.
The sources also said that without an increased revenue, the PA would be unable to maintain its current duties in the West Bank, let alone take on a larger role in Gaza.
The United States chose to rely on a revitalized Palestinian Authority as the best, if not only, option for what it described as "the day after" in Gaza. However, the financial situation would reportedly limit its ability to implement reforms deemed necessary for such a plan to be carried out.
In addition to the pay-for-slay policy, the PA has been routinely accused of corruption and links with extremists, while greatly relying on aid from the United States and Europe, as well as tax revenue from Palestinians working in Israel.
This article was first published by i24NEWS.
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