Israeli Cabinet Divided Over Tax Funds Transfer to Palestinian Authority, Excluding Gaza

The security cabinet of Israel has voted to transfer frozen tax funds to the Palestinian Authority (PA) but withhold those funds designated for Gaza, in an effort to support the PA as a more moderate force against extremists. The decision comes after a standoff between government ministers and is backed by security chiefs and Washington. The move will deduct funds intended for Gaza, as well as funds continuously deducted to offset money the PA pays to imprisoned terror convicts and their families. The decision is in contrast to Finance Minister Bezalel Smotrich's call to freeze the transfer of customs duties, accusing the PA of supporting Hamas.