Cabinet meeting
Cabinet meetingHaim Zach/GPO

The Political-Security Cabinet decided on Thursday evening to offset from the funds of the Palestinian Authority all the money intended for the Gaza Strip, in addition to the offset that is carried out, in accordance with the law, of funds paid to terrorists and their families.

However, the decision states that after the offset, Israel will transfer the tax money to the Palestinian Authority during the war.

It was further decided that Israel would be cutting off all contact with Gaza. There will be no more entry of Palestinian Arab workers from Gaza and the workers who were in Israel on the day the war broke out will be returned to Gaza.

In recent days, officials in the defense establishment attacked Finance Minister Bezalel Smotrich, who decided to withhold the tax money that Israel collects on behalf the Palestinian Authority amid the war in Gaza.

On Wednesday, Defense Minister Yoav Gallant called for the government to continue transferring funds to the Palestinian Authority.

“The State of Israel is interested in maintaining stability in Judea and Samaria, always and especially during these times. The funds should be transferred immediately so that these may be used by the operational mechanism of the Palestinian Authority and by the sectors of the Palestinian Authority that are dealing with the prevention of terrorism. I think it is only appropriate to uphold the decision of the cabinet as decided several days ago,” Gallant said in a press conference.

Smotrich responded to Gallant and said, "I appreciate the Minister of Defense and support him for working day and night for Israel's security. His stance on the transfer of funds to the PA is a severe mistake."

Smotrich added, "I do not intend on letting the State of Israel fund our enemies in Judea and Samaria who support Hamas and fund the 10/7 terrorists who murdered and massacred us. The PA is not the solution; it is part of the problem. We won't repeat the same mistake and conception that blew up in our face."