Key event

The Knesset puts deductions from Palestinian clearance revenue into statute

8 Jun 2026

What happened

The Knesset passes, at second and third readings and by 29 votes to 5, a law under which a yearly amount is deducted from clearance revenue due to the PA, set by the Ministerial Committee for National Security Affairs on a report from the finance minister. It builds on a 2018 law deducting the PA's payments to prisoners and their families.

Deductions that had been ministerial decisions became law, which makes them harder for a future Israeli government to reverse by policy alone. With the correspondent-banking arrangement extended only to the end of 2026 (the reported horizon), the PA's fiscal channel to Israel faces two decisions after the October 2026 election. The law is an amendment to the 2018 Freezing Law (bill no. 1124, published 10 June 2026, per the Knesset Shkufa tracker; the official Reshumot text has not been read).

Confidence: Moderate

When8 Jun 2026
KindEconomic · Political
ArenaWest Bank & Jerusalem

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