Palestinian Authority Tells U.S. It Will Stop Taking Aid to Avoid Multi-million Dollar Lawsuits

The 'Anti-Terrorism Clarification Act' allows citizens to sue foreign entities that receive U.S. assistance for past acts of terrorism, and could now sever all security assistance

File photo: U.S. President Donald Trump meets with Palestinian President Mahmoud Abbas in the West Bank city of Bethlehem, May 23, 2017.
Evan Vucci/AP

WASHINGTON – The Palestinian Authority informed the Trump administration that it will stop taking any form of government assistance from the United States at the end of the month, as a result of legislation passed last year by Congress.

The law that led the PA to make this decision is the “Anti-Terrorism Clarification Act”, known as ATCA, which makes it possible for U.S. citizens to sue foreign entities that receive U.S. assistance for past acts of terrorism. 

The Palestinian decision could lead to the end of the U.S. support for the PA’s security forces. These forces work regularly with the Israeli military to thwart terror attacks. In his last appearance before the Israeli government last week, outgoing IDF Chief of Staff Gadi Eisenkot said that the security coordination between Israel and the PA’s forces helps save lives and maintain stability in the region.

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During 2018, the Trump administration cut all forms of U.S. civil assistance to the Palestinians, but it did not touch the security assistance, stating that the security coordination between the PA and Israel serves American foreign policy interests. Now, however, U.S. support for the PA security forces could end at the end of January, putting at risk the continuation of efficient security coordination. 

The ATCA bill, which the PA blamed for its decision, was promoted last year in Congress in response to rulings by U.S. courts that rejected multi-million dollar lawsuits against the PA. These lawsuits were filed by American citizens who were injured or lost loved ones in terror attacks committed by Palestinians, mostly during the second intifada. The Supreme Court in Washington affirmed a ruling by a lower court that the American legal system does not have jurisdiction to deal with such lawsuits.

This led members of Congress to promote the ATCA bill, which states that U.S. courts will have jurisdiction to hear terrorism-related lawsuits against any foreign entity reviving U.S. government assistance. This means that if the PA will receive even one dollar of U.S. funding, it could face lawsuits asking for hundreds of millions of dollars in compensation. The law has also created concern in other countries in the Middle East that rely on U.S. assistance. It would not apply to Israel, however, because of the specific sources of funding through which Israel receives U.S. security assistance.

Only after the bill passed Congress and was signed into law by President Trump, senior administration officials became aware of its possible impact on security coordination. In recent months, the administration tried to negotiate a “fix” to the law together with lawmakers on Capitol Hill. As reported in Haaretz two weeks ago, these efforts have stalled because of the ongoing government shutdown

The PA’s letter to U.S. Secretary of State Mike Pompeo, which was first reported over the weekend by NPR, could create a sense of urgency in Washington to solve the security assistance question.

Two sources who are involved in the negotiations on the subject told Haaretz that a possible solution could emerge with the involvement of the CIA or the Pentagon, but its exact mechanism hasn’t yet been drawn in full. “Everyone wants a fix, but it’s still not clear how we can get it,” explained one of the sources, who asked not to be named in order to discuss politicallly-sensitive negotiations.