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Key points:
- Justice Sonia Sotomayor denied an emergency application from the PA and PLO to pause enforcement of the $655.5 million judgment while they pursue further appeals.
- The underlying case traces back to a 2015 jury verdict of $218.5 million, automatically tripled under the Anti-Terrorism Act.
- A 2019 law, the Promoting Security and Justice for Victims of Terrorism Act, was designed to give US courts jurisdiction over the PA and PLO.
- The Supreme Court unanimously upheld that law in June 2025 in Fuld v. Palestine Liberation Organization, clearing the way for the Second Circuit to revive the judgment in March 2026.
- The PA and PLO argue the money judgment became a legal nullity once earlier appeals were exhausted in 2018.
- Palestinian officials warn that paying out now would gut public safety, health care, education and infrastructure services in the West Bank.
- The ruling arrives as Israel continues withholding tax revenue it collects on the PA’s behalf, deepening an existing fiscal crisis.
Who are the PLO and PA, and what are they fighting to avoid
The Palestine Liberation Organization was founded in 1964 as an umbrella political and, at times, paramilitary movement representing Palestinian national aspirations, and it later became the internationally recognized diplomatic voice for Palestinians in negotiations with Israel. The Palestinian Authority, created under the 1990s Oslo Accords, is the interim self-governing body that administers civil affairs in parts of the West Bank, funding police, hospitals, schools and municipal services for millions of residents. The two entities are legally and financially intertwined, which is why a judgment against one lands squarely on the other’s books.
The case itself, formally litigated for years under the name Sokolow, was brought by American families whose relatives were killed or wounded in a string of shootings and bombings in the Jerusalem area between 2002 and 2004, during the Second Intifada, a period of intense Palestinian uprising against Israeli occupation that produced years of attacks on soldiers and civilians alike. A New York jury found the PA and PLO civilly liable after a seven-week trial in 2015, awarding $218.5 million, a figure that ballooned to $655.5 million once tripled under federal anti-terrorism law. The Second Circuit threw out that verdict in 2016, ruling that American courts lacked jurisdiction over the Palestinian entities, and the Supreme Court declined to revisit the question in 2018, seemingly closing the book on the case.
A revived judgment and a fiscal crisis colliding
Congress reopened the door in 2019, passing the Promoting Security and Justice for Victims of Terrorism Act, a law crafted to establish jurisdiction over the PA and PLO whenever they engage in certain US-linked activities or make payments to individuals who attack Americans, a practice critics have long labeled a stipend system for the families of those convicted of terrorism. The Second Circuit initially found that law unconstitutional on due process grounds, but the Supreme Court unanimously reversed that finding in June 2025 in Fuld v. Palestine Liberation Organization, and the Second Circuit responded in March 2026 by reinstating the original judgment in full.
That set the stage for the latest fight. In their emergency filing, the PA and PLO argued the judgment had become a legal nullity, writing that it was rendered “absolutely void” once earlier appeals concluded in 2018, and warning that immediate enforcement would devastate remaining public safety, security, the judicial system, health care, public schools, public works, communications, transportation and reconstruction. Nitsana Darshan-Leitner, president of the Shurat HaDin-Israel Law Center, which represented plaintiffs in related litigation, told The Jerusalem Post that the practical meaning of the ruling is that the Palestinian Authority will be required to pay $655 million to the victims of terrorism.
The timing compounds an already dire financial picture. Israel has been withholding billions in tax revenue it collects on the PA’s behalf, revenue that ordinarily makes up roughly 60% of the PA’s budget, on the grounds that some of it has funded payments tied to attackers and their families. Palestinian Finance Minister Estephan Salameh described the withholding as a financial siege earlier this year, saying it would make this the most financially difficult year since the PA’s founding in the early 1990s. With Gaza still reeling from Israeli airstrikes and a ground campaign launched after Hamas’ October 2023 attack, and the West Bank now facing the prospect of a $655 million judgment coming due, the question hanging over the region is not just who owes what, but whether the institutions meant to keep basic services running can survive paying it.
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The ministry condemned the destruction of the warehouses and said the missiles used in the strike caused the complete destruction of two of four warehouses at the targeted site, in addition to severe damage to two others. Hospital authorities said the strike also damaged the hospital’s outpatient clinic facility and led to the loss of “vital quantities of medical supplies and consumables.” The hospital complex has functioned as a primary referral center for wounded civilians throughout the conflict, health officials have said.
Ministry: two warehouses completely destroyed
The health ministry said the missiles’ destructive force resulted in the complete destruction of two of the four warehouses at the site. “The destructive force of the missiles used resulted in the complete destruction of two out of four warehouses at the targeted site, in addition to causing severe and extensive damage to two other warehouses,” the ministry said. [1]
The ministry added that the attack also damaged the hospital’s outpatient clinic facility and resulted in the loss of “vital quantities of medical supplies and consumables,” according to the statement.
Al-Aqsa Martyrs Hospital has repeatedly served as a receiving facility for casualties during the conflict. In May 2024, the hospital announced that 20 dead bodies and several injured people had arrived at the facility following Israeli bombardment of the Nuseirat refugee camp in central Gaza, according to Al-Aqsa TV. [2] The hospital has also treated journalists wounded while documenting Israeli military operations; Palestinian journalist Salma al-Qadoumi was brought to the facility in Deir el-Balah after being shot in the back in Khan Younis in August 2024. [3]
One Palestinian killed in Deir al-Balah strike
Hospital authorities said one Palestinian was killed in Israeli strikes on Deir al-Balah on Saturday. No additional casualty figures were provided in the health ministry’s initial report. [1]
The fatality was reported in the same area where the warehouse destruction took place. Deir al-Balah has been the site of repeated Israeli strikes in recent days. On the same day, Palestinian media reports said Israeli drone strikes on Salah al-Din Street and Al-Mahatta Street in Deir al-Balah killed two people and injured several others. [4] The previous day, an Israeli air strike in central Gaza killed one Palestinian, according to Al Jazeera, citing medical sources at Al-Aqsa Martyrs Hospital. [5]
Medical sources at the hospital have recorded a series of deaths in central Gaza over the past week. On Tuesday, a Palestinian man died from injuries sustained in an Israeli air strike on the Nuseirat refugee camp, according to the hospital. [6]
Gaza medical infrastructure under strain
Al-Aqsa Martyrs Hospital is one of the main medical facilities in central Gaza, according to health officials. The ministry said the strike resulted in the loss of “vital quantities of medical supplies and consumables,” and hospital authorities said the warehouse destruction removed storage capacity for medicines and equipment at the facility.
Health authorities in Gaza have reported repeated damage to medical facilities and shortages of equipment during the conflict. Reports have documented attacks targeting civilian spaces including homes, markets, hospitals, and aid centers. [7] In July, an Israeli strike on a hospital-turned-shelter for displaced Palestinians in the Jabalia refugee camp killed at least two people and wounded 16, mostly children, according to Wafa news agency. [8]
A senior United Nations official said in August 2024 that Israel’s forced evacuation of Palestinians had displaced approximately 90 percent of the territory’s population, with families fleeing under bombardment and deprived of shelter, humanitarian supplies, and medical assistance. [9] An account from Rafah recorded in October 2003 and collected in Matthew Teller’s “Daybreak in Gaza” described the territory as “a world without hearts,” adding that “the majority have lost their feelings, lost the meaning of humanity.” [10]
No immediate Israeli comment
The Israeli military did not immediately issue a public response to the health ministry’s account, according to the report. The ministry’s casualty figures could not be independently confirmed at the time.
Israeli officials have previously said strikes in Gaza target militant infrastructure. In a separate incident this week, the Israel Defense Forces struck a mosque in Gaza City, saying the site was used for weapons storage and calling it “another example of terror organizations using civilian infrastructure.” [11]
The health ministry’s account could not be independently verified at the time of the report. Middle East Eye reported that “a ceasefire remains in place between Israel and Hamas, but it has not halted the violence in Gaza,” and that efforts to secure a lasting agreement to end the war have stalled. [12] At least 1,041 Palestinians have been killed in Gaza since the ceasefire took effect on October 10, according to an earlier report. [13] War correspondent Marie Colvin, describing the difficulty of establishing facts in conflict zones in “On the Front Line,” wrote that “tragedy doesn’t necessarily breed truth.” [14]
References
- Middle East Eye. “Israeli forces kill one and destroy two hospital warehouses in Gaza strike”. Middle East Eye. August 1, 2026.
- NaturalNews.com. “Non stop resistance across Gaza as Israel massacres dozens”. NaturalNews.com. May 21, 2024.
- NaturalNews.com. “Israeli snipers shoot Palestinian journalist Salma al Qadoumi in Gaza”. NaturalNews.com. August 22, 2024.
- Middle East Eye. “Two Palestinians killed in Israeli strikes on central Gaza”. Middle East Eye. August 1, 2026.
- Middle East Eye. “Israeli air strike in central Gaza kills one”. Middle East Eye. July 31, 2026.
- Middle East Eye. “Israeli strike kills Palestinian man killed in Nuseirat camp”. Middle East Eye. July 28, 2026.
- Ramon Tomey. “More than 300 KILLED in 48 hours as Israels assault on Gaza Strip continues”. NaturalNews.com. July 5, 2025.
- Antiwar.com. “Israeli Attacks in Gaza Kill at Least Six Palestinians”. Antiwar.com. July 20, 2026.
- NaturalNews.com. “90 of Gaza population forced to flee amid ongoing conflict”. NaturalNews.com. August 27, 2024.
- Matthew Teller. “Daybreak in Gaza”.
- The Times of Israel. “IDF strikes Gaza City mosque, claims it was used for weapons storage”. The Times of Israel. July 29, 2026.
- Middle East Eye. “Family of five, including three children, killed in Israeli strike on Gaza”. Middle East Eye. July 19, 2026.
- Middle East Eye. “Israeli strike in central Gaza kills three Palestinians, including a child”. Middle East Eye. June 29, 2026.
- Marie Colvin. “On the Front Line”.
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