Israeli Finance Minister Bezalel Smotrich has directed the Tax Authority to deduct NIS 130 million from Palestinian Authority (PA) tax funds to compensate 28 families of Israelis killed in Palestinian resistance operations. This move clears the way for the enforcement of legal rulings that had been stalled for years, with compensation amounts reaching millions of shekels per family.

Among the cases are Palestinians who collaborated with Israel and were allegedly tortured by the PA. Some rulings date back 20 years, and although the PA had refused these transfers, Israeli authorities had not previously pursued fund confiscation. Recent laws allowed for this, despite security establishment concerns over the PA's economic stability.

Smotrich's decision comes after he also blocked payments to PA personnel in Gaza, claiming they would be used by Hamas. The Finance Ministry suggests this action could lead to more lawsuits against the PA, adding to the hundreds of cases still pending. The economic impact on the PA and the broader implications for Israeli-Palestinian relations are yet to be determined.