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NY Court Orders PA to Pay $655.5 Million to Intifada Victims

April 5, 2026 Emma Walker – News Editor News

A New York appellate court has reinstated a judgment requiring the Palestinian Authority (PA) to pay $655.5 million in damages to victims of attacks carried out during the Second Intifada.

The ruling reverses a previous lower court decision that had shielded the PA from the liability. The current decision restores the original award, which was sought by plaintiffs who suffered losses during the wave of suicide bombings and militant attacks that characterized the uprising in the early 2000s.

Legal Basis for the Judgment

The litigation centers on the assertion that the Palestinian Authority provided financial support and incentives to individuals who carried out attacks against civilians. The plaintiffs argued that the PA’s policy of “martyr payments”—stipends provided to the families of prisoners and those killed during attacks—constitutes a direct incentive for terrorism, thereby making the authority legally liable for the resulting damages under U.S. Law.

The appellate court’s decision focuses on the application of the Foreign Sovereign Immunities Act (FSIA). Although foreign states generally enjoy immunity from the jurisdiction of U.S. Courts, the “terrorism exception” allows for lawsuits when a state-sponsored entity is involved in acts of torture, extrajudicial killing, or aircraft sabotage on U.S. Soil or against U.S. Nationals.

Financial Implications and Enforcement

The $655.5 million figure represents a significant financial burden for the Palestinian Authority, which has faced chronic budgetary crises and a decline in international aid over the last decade. Legal representatives for the victims intend to seek the recovery of these funds through the seizure of PA assets held within the United States.

Financial Implications and Enforcement

The reinstatement of the ruling removes a critical legal barrier that had previously prevented the plaintiffs from executing the judgment. The court found that the PA’s actions fell within the scope of the exceptions to sovereign immunity, validating the lower court’s initial assessment of the PA’s role in the events of the Second Intifada.

Institutional Response

The Palestinian Authority has consistently denied that its social welfare payments to families of prisoners are intended to incentivize terrorism, asserting instead that they are social support mechanisms for those impacted by the conflict. However, the New York court has rejected these arguments in favor of the evidence presented by the plaintiffs regarding the nature of the payments.

The PA has not issued a formal statement regarding the immediate steps it will take to address the reinstated judgment or whether it will pursue further appeals in higher courts.

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intifada, new York, Palestinian Authority, Palestinian terrorism, pay for slay, second intifada, terrorism

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