Smotrich freezes funds for PA, minister moves money to Arab towns

The Finance Ministry will not be giving the Palestinian Authority funds this month, Finance Minister Bezalel Smotrich informed Prime Minister Benjamin Netanyahu in a letter on Monday.

The State of Israel collects taxes on behalf of the PA and transfers the money to it monthly minus a fee for services like electricity and water.

Smotrich announced his intention to withhold the funds from the PA, saying it was because it supports terrorism.

"After the terrible massacre that Hamas carried out in the towns by Gaza on that Black Shabbat, The PA didn't see fit to distance itself from these barbarian actions, and officials in the authority even expressed support for the awful massacre," wrote Smotrich to Netanyahu. "Furthermore, the PA is acting against Israel at the International Criminal Court and the International Court of Justice."

Smotrich went on to write that these actions prove that the PA is a terrorism-supporting organization and that therefore, the money is being used to fund activity against the State of Israel and its citizens.

"It is inconceivable that we continue, in this reality, to transfer the funds as if nothing has happened," wrote Smotrich. "As such, I would like to inform you that I instructed the Finance Ministry to freeze the funds transfer this month. At the same time, I would request that you raise the issue in an urgent discussion in the diplomatic-security cabinet.

Along with the letter, Smotrich enclosed a list of comments made by senior PA officials as well as the PA's official TV channel glorifying October 7, blaming the attack on Israel, and expressing hope and support for another such attack.

Interior minister says he will transfer funds to Arab localities

Meanwhile, Interior Minister Moshe Arbel announced to Smotrich on Sunday that he would immediately transfer NIS 200 million to Arab local authorities that they were supposed to receive this year but had not yet been approved by the finance minister.

The money was meant to be given to the Arab local authorities as part of a government decision that NIS 200 million would be given to them every year between 2022 and 2026. Arbel and Smotrich had agreed this year that the money would not be handed over without Smotrich's approval.

"The Arab local authorities formulated their annual budgets and made decisions on their expenses based on this decision," Arbel told Smotrich. "Despite the aforementioned decision, the budget has not been transferred to them yet this year."

Arbel went on to say that due to the funds not being given to them and because of the war, the authorities have reached out to him telling him they're in desperate need of the money.

"This difficulty and the urgent need for a solution was known before the war and I tried to contact you about it multiple times," Arbel continued. "Since the beginning of the war, I have contacted people in your office multiple times, but I still have received a response or your opinion on the matter."

As such, Arbel said that he was giving the Arab local authorities the promised budget immediately and without Smotrich's approval.