Report Claims US Using Frozen Palestinian Funds to Advance Israel Normalization Agenda

WebDesk

18 June, 2026 12:50

Report Claims US Using Frozen Palestinian Funds to Advance Israel Normalization Agenda

The US government is using Palestinian funds blocked by the Israeli regime to advance a controversial scheme for “normalisation” of diplomatic relations between Arabs and Israel, a new report has shown.

A report by the Times of Israel published on Wednesday said that the US President Donald Trump’s administration has proposed a Memorandum of Understanding (MoU) with the Palestinian Authority (PA) that requires the PA to drop all international legal cases against the Israeli regime in return for access to a fraction of its frozen funds.

The report said the MoU explicitly demands that the PA refrain from internationalising the conflict with the Israeli regime.

The PA has more than $5 billion worth of tax revenues that Israel has illegally blocked for more than a year.

The US proposal for allowing the PA to access a fraction of the funds comes with other requirements, including for the PA to dismantle a welfare program for the families of Palestinians killed or imprisoned by the Israeli regime.

The report by The Cradle said that the PA has reportedly agreed to some of the US demands to be able to access the funds.

Israeli finance minister Bezalel Smotrich, a notorious warmonger in the Israeli cabinet, has deliberately blocked the transfer of the funds to the PA in an attempt to cause a collapse of the Palestinian government.

Experts believe US pressure on the PA is in line with its efforts to advance the normalisation project, known as the “Abraham Accords,” which seeks to persuade more Muslim and Arab governments to “normalise” their relations with the Israeli regime.

That comes as international campaigners have called on the US and other international powers to focus on Gaza and its reconstruction after the Israeli genocidal war, and on efforts to prevent Israel’s expansion of settlements in the occupied West Bank.