"The money will be cut off," senior Palestinian official Saeb Erekat told AFP in the West Bank city of Ramallah. "We don't want to receive any money if this will take us to court." The ATCA legislation passed by Congress last year provides for any government that receives funding to be subject to US counterterrorism laws.
The PA faces potential lawsuits from families of American victims of past Palestinian attacks. The aid of around $35 million a year was in support of Palestinian security forces in the occupied West Bank, which cooperate closely with their Israeli counterparts against Hamas and other radical groups.
Media reports had said Israeli officials expressed concern to the US about the impact of the security cut and encouraged them to find a workaround. Erekat, however, denied the PA was seeking a way by which the funding could continue without exposing the government to the ATCA. "We are not seeking anything. The Americans have made a decision," he said. "But we are going to continue being part of fighting terror in the region."