The Biden administration is looking to financially prop up the Palestinian Authority amid warnings from officials in Ramallah that it is close to running out of money, potentially jeopardizing U.S. hopes that the organization will be able to govern Gaza when Israel’s war with Hamas is over.
The administration is trying to work around a law that prevents it from contributing directly to the Palestinian Authority, while also nudging allies to give more to the organization, U.S. officials said. Palestinian officials have warned that they could run out of the money needed to pay salaries and provide essential government services as soon as late February, the U.S. officials said.
Early in the war in Gaza, the U.S. opted to rely on a revitalized Palestinian Authority as the best, if not only, option for what it has described as “the day after” the war ends. U.S. officials said they are concerned that without a revenue boost, the organization won’t be stable enough to maintain its hold on power in the West Bank, let alone be in a position to take on an expanded role.
The organization’s financial plight also limits its ability to implement overhauls the U.S. says are needed to secure support from Israel and from the Palestinian public. The Palestinian Authority has been dogged by accusations of corruption and ties to extremists that led to the cutoff of U.S. funds in the first place.
If the organization runs out of money, U.S. officials say, it will be vulnerable to groups viewed by the U.S. and Israel as more extremist and opposed to compromise. It could also be overwhelmed by a deteriorating security situation in the West Bank, the officials say, amid an increase in clashes between Israeli forces and Palestinian militants, as well as attacks by Israeli extremists
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