Russia

US Supreme Court clears $655 million terrorism payout by Palestinian groups

RT English · 2026-08-05

AI SUMMARY

• What happened: The US Supreme Court denied a request from the Palestinian Authority (PA) and the Palestine Liberation Organization (PLO) to suspend a $655.5 million judgment compensating American families of victims of terrorist attacks in Israel during the early 2000s. • Why it matters: The ruling could severely impact the Palestinian economy, potentially leading to increased unemployment and destabilization in the region, as the PA and PLO argue that the financial burden may incite violence and hinder essential services. • What to watch next: Monitor the economic repercussions in the West Bank and Gaza, as well as any potential responses from Palestinian leadership and the international community regarding the enforcement of the judgment and its implications for regional stability.

**US Supreme Court Upholds $655 Million Judgment Against Palestinian Groups**

The US Supreme Court has denied a request from the Palestinian Authority (PA) and the Palestine Liberation Organization (PLO) to halt the enforcement of a $655.5 million judgment. This ruling compensates American families whose relatives were victims of terrorist attacks in Israel during the early 2000s.

On Monday, Justice Sonia Sotomayor rejected the Palestinian groups' application without comment or referral to the full court, as reported by Courthouse News Service. The PA and PLO had sought to suspend the enforcement of the judgment, arguing that the financial burden would severely impact the Palestinian economy, potentially leading to a recession, increased unemployment, and failure of essential social services. They warned that the enforcement could also incite "widespread violence" in the West Bank and destabilize neighboring countries, including Israel, Jordan, and Egypt.

In their appeal, the PLO claimed that immediate enforcement of the judgment would devastate public safety, security, and critical infrastructure, including the judicial system, healthcare, public schools, and transportation. They emphasized that such financial strain would hinder reconstruction efforts in the region.

The legal battle stems from lawsuits filed by families of US citizens who were killed or injured in six terrorist attacks that occurred between 2002 and 2004 during the Second Intifada, a period marked by heightened violence and conflict between Palestinians and Israelis. Initially, a federal appeals court had overturned a ruling that held the PA and PLO liable for the attacks, citing a lack of jurisdiction. However, the case gained traction after Congress passed a law in 2019 allowing Americans to seek compensation for acts of terrorism committed abroad. In a subsequent decision last year, the Supreme Court upheld the legislation that enabled these lawsuits.

The financial situation in the West Bank has been precarious, exacerbated by Israel's withholding of billions in tax revenue that it collects on behalf of the PA. Israeli authorities have claimed that these funds are used to support terrorism, leading to a significant financial strain on the PA, which relies on these transfers for approximately 60% of its budget. Palestinian Finance Minister Estephan Salameh has characterized the withholding of funds as a "financial siege" imposed by Israel, stating that 2023 would be one of the most financially challenging years for the PA since its establishment in the early 1990s.

The situation is further complicated in Gaza, where the enclave, governed by Hamas, has faced extensive destruction due to Israeli airstrikes and a ground invasion that began in response to a surprise attack by Hamas in October 2023. This ongoing conflict has led to significant humanitarian concerns, compounding the challenges faced by Palestinian authorities.

The Supreme Court's decision to uphold the judgment against the PA and PLO marks a significant moment in the ongoing legal and political disputes surrounding the Israeli-Palestinian conflict. As the Palestinian leadership grapples with the potential economic fallout from the ruling, the implications for regional stability and public safety remain uncertain.

Source: RT English
RELATED NEWS

More Stories

All News
Russia

Trump says Strait of Hormuz to be opened very soon

• What happened: US President Donald Trump announced that the Strait of Hormuz will be opened for navigation very soon, emphasizing positive discussions regardi...

Russia

Thai foreign ministry conveys letter of condolence to Lavrov over murder of Russians

• What happened: The Thai foreign ministry sent a letter of condolence to Russian Foreign Minister Sergey Lavrov regarding the murder of two Russian citizens in...

Russia

Mother of Russians killed in Thailand sees execution as too lenient for killers — relative

• What happened: The mother of two Russians killed in Thailand opposes the death penalty for their alleged killers, advocating instead for life imprisonment, as...

Russia

Brazilian president, Russian Maritime Board chief hold talks on international security

• What happened: Brazilian President Luiz Inacio Lula da Silva met with Nikolay Patrushev, Chairman of the Russian Maritime Board, to discuss international secu...

Russia

Fire at Wildberries sorting center occurs in Tula Region during Ukraine’s UAV attack

• What happened: A fire broke out at a Wildberries sorting center in the Tula region of Russia after a Ukrainian drone crashed on the premises, causing damage t...

Russia

US preparing to announce deal with Iran, Oman on Strait of Hormuz on Wednesday — Axios

• What happened: The United States is set to announce temporary agreements with Iran and Oman regarding the reopening of the Strait of Hormuz, with an expected ...