US Aim to Provide Financial Aid to Palestinian Authority for Gaza Control Post-Hamas Conflict

The Biden administration is looking to provide financial aid to the Palestinian Authority (PA) as it faces a cash shortage. The administration hopes the PA can govern Gaza once the Gaza war ends, according to The Wall Street Journal (WSJ). The PA has warned it will run out of money to pay salaries to government employees by the end of February, potentially leading to extremist groups taking control of the West Bank. The US Congress enacted the Taylor Force Act in 2018, suspending US aid to the PA due to its “pay for slay” policy. The Biden administration is trying to work around this legislation and encourage allies to provide more aid. The PA’s revenue sources, including US and European assistance and tax revenue from Israel, have been largely suspended, leading to a financial crisis. Norway has agreed to assist in transferring frozen tax funds for the PA, and the US had sent nearly half a billion dollars in aid to Palestinians before the October 7 massacre. With the PA operating under the most restrictive budget, the Biden administration is aiming to revitalize the organization to maintain control in Gaza and the West Bank.