The US administration is reportedly exerting significant pressure on the Israeli government to transfer taxes collected on its behalf to the Palestinian Authority, as reported by Kan.

According to Kan, the decision to once again freeze these funds was purportedly made by Finance Minister Bezalel Smotrich.

This was in response to the PA's bid for recognition of a Palestinian state at the UN and their pursuit of legal action against Israeli leaders in international courts.

Despite the PA's ongoing payment of salaries for certain education and health workers in Gaza, concerns linger over the potential diversion of funds to Hamas. This risk remains despite an agreement to transfer funds through Norway, intended to guarantee their proper use.

Allegedly, the Palestinian Authority has warned public sector employees that they will receive only half of their wages upfront, with the remainder to be paid once the funds are received.