Trump leverages illegally frozen Palestinian funds to force normalization, halt legal cases against Israel
The Cradle | June 17, 2026
US President Donald Trump is seeking to leverage severe Palestinian financial hardship to coerce a “normalization” agreement that would require the Palestinian Authority (PA) to drop all international legal challenges against Israel, the Times of Israel reported on 17 June.
This proposed memorandum of understanding (MoU), negotiated by US officials Aryeh Lightstone and Scott Leith, demands the Palestinian Authority (PA) “halt efforts to internationalize the conflict with Israel.”
In exchange for these concessions, Washington has offered the hollow possibility of reopening the Palestine Liberation Organization (PLO) mission in Washington and lifting sanctions, but only after the PA completes a series of “Saudi-chaperoned reforms.”
The PA has further requested language in the MoU calling for a cessation of Israeli settlement expansion and a crackdown on “rampant settler violence” in the occupied West Bank.
Central to these talks is the fate of over $5 billion in Palestinian tax revenues, which Israel has been illegally withholding for over a year in violation of the Oslo Accords.
The US seeks to redirect these funds to the “Board of Peace” and its National Committee for the Administration of Gaza (NCAG) to finance a post-war governance plan that bypasses the PA until it meets Washington’s benchmarks – including the dissolution of the PA’s welfare program for the families of Palestinians killed or imprisoned by Israeli occupation forces.
While the PA has agreed in principle to this diversion to secure a fraction of its own money, Israeli Finance Minister Bezalel Smotrich has blocked the transfer, openly advocating for the “collapse of the PA” and rejecting even debt-settlement transfers in a deliberate effort to ensure the total financial strangulation of Palestinian governance.
Despite external audits confirming the PA has successfully reformed its welfare system to end payments based on attacks, a US Department report, relying on Israeli data, claimed the PA still provides “compensation in support of terrorism.”
As the US explores legally thin options to unilaterally seize Palestinian funds, officials admit the administration views the West Bank as an “afterthought” while prioritizing the expansion of the Abraham Accords.
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From the Archives
Robert Faurisson and the Study of the Past
By Gilad Atzmon | October 23, 2018
The history of ideas provides us with the names of those few men and women who challenged the boundaries of tolerance. Professor Robert Faurisson was one such man. Faurisson, who died last Sunday at age 89, was a French academic who didn’t believe in the validity of parts of the Holocaust narrative. He argued that gas chambers in Auschwitz were the “biggest lie of the 20th century,” and contended that deported Jews had died of disease and malnutrition. Faurisson also questioned the authenticity of the Diary of Anne Frank many years before the Swiss foundation that holds the copyright to the famous diary “alerted publishers that her father (Otto Frank) is not only the ‘editor’ but also legally the ‘co-author’ of the celebrated book” (NY Times ).
In the France of the late 1960s-1970s Faurisson had reason to believe that his maverick attitude toward the past would receive a kosher pass. He was wrong. Faurisson may have failed to grasp the role of the Holocaust in contemporary Jewish politics and culture. And he did not grasp that Jewish power is literally the power to silence opposition to Jewish power.
In 1990 France made holocaust revisionism into the crime of history denial. Faurisson was repeatedly prosecuted, beaten and fined for his writings. He was dismissed from his academic post at Lyon University in 1991.
I am bothered by the question of why Jews and others attached to their politics are desperate to restrict the story of their past. This question extends far beyond the holocaust. … continue
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