Netanyahu Blocks Bill Redirecting Palestinian Authority Funds to Bereaved Israeli Families

A bill proposed by Knesset member Moshe Pasal to redirect frozen Palestinian Authority funds originally intended for Gaza to compensate bereaved Israeli families and terror victims from the recent Iron Swords conflict has been stalled by Prime Minister Benjamin Netanyahu. The legislation had passed its first reading and a consensus text was agreed upon with National Security Council representatives, but the second and third readings were abruptly canceled before the Foreign Affairs and Defense Committee vote.

Senior Likud officials confirmed the freeze was ordered by Netanyahu shortly before the scheduled committee discussion. If the bill is not approved by Friday, when the Knesset is set to dissolve, it will not advance in the current session. Consequently, billions of shekels in frozen PA funds held by Israel will remain allocated for Gaza under existing legal frameworks, rather than being redirected to compensate Israeli victims.

The Prime Minister's office stated that the issue requires further deliberation and decisions within the National Security Council and the cabinet before any legislative progress can continue. Meanwhile, families of the fallen and terror victims had met with security officials to finalize the bill's wording, aiming for swift passage amid the tight parliamentary timeline.

This development leaves the fate of the frozen funds uncertain and delays financial relief for families affected by terror linked to Gaza.