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Knesset Advances Bill to Seize PA Terror Funds for October 7 Victims

Summary
The Knesset Foreign Affairs and Defense Committee moved forward Tuesday with legislation that would withhold certain funds destined for the Palestinian Authority and redirect them toward compensating victims of terrorism, including families affected by the October 7 massacre. The proposal, which cleared the committee for a first reading, was advanced under the leadership of committee chairman MK Boaz Bismuth and sponsored by MK Moshe Passal. Under the bill, Israel would annually freeze an amount equal to the funds the Palestinian Authority transferred to Gaza during the previous year. The withheld money would then be allocated to compensate victims of terrorism originating from the Gaza Strip. The hearing opened with testimony from bereaved families whose relatives were murdered in the October 7 attacks. Family members urged lawmakers to approve the measure.
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Knesset Advances Bill to Seize PA Terror Funds for October 7 Victims

The Knesset Foreign Affairs and Defense Committee moved forward Tuesday with legislation that would withhold certain funds destined for the Palestinian Authority and redirect them toward compensating victims of terrorism, including families affected by the October 7 massacre. The proposal, which cleared the committee for a first reading, was advanced under the leadership of committee chairman MK Boaz Bismuth and sponsored by MK Moshe Passal. Under the bill, Israel would annually freeze an amount equal to the funds the Palestinian Authority transferred to Gaza during the previous year. The withheld money would then be allocated to compensate victims of terrorism originating from the Gaza Strip. The hearing opened with testimony from bereaved families whose relatives were murdered in the October 7 attacks. Family members urged lawmakers to approve the measure. Following the public portion of the session, committee members held a closed-door discussion in which representatives of relevant government agencies and ministries presented their assessments. Ben Zoherman, whose father was killed at the Sha’ar HaNegev Junction during the October 7 assault, described the uncertainty his family continues to face. “I don’t know where the terrorist who murdered my father is today. We know that some of the terrorists operating at that junction returned to Gaza that same day. I don’t know if justice will ever be served, and I don’t know who can be held accountable.” Zoherman also said that some victims’ families fall outside existing support programs, leaving them feeling abandoned and without sufficient assistance. Galit Shopen, whose brother Ziv Shopen was murdered in Kibbutz Be’eri, voiced support for the legislation, saying, “No amount of money will fill the void Ziv left behind, nor can it restore what we lost. But if there are funds originating from entities that for years encouraged, supported, or rewarded terror-related activities, I believe it is right and just that these funds be channeled to compensate the families of terror victims and aid those harmed by acts of terror.” Moshe Saville of the OneFamily organization told committee members that his group assists thousands of victims of terrorism and war and believes the legislation addresses a real and pressing need among bereaved families. “Nothing will bring back those we lost. No amount of money in the world can erase the pain or blur the loss. But it can grant the families a modicum of peace, a bit of stability, and some breathing room amid the harsh reality they live in,” said Saville. During the deliberations, a representative of the Justice Ministry raised several legal concerns regarding the application of the bill to victims of the October 7 attacks. She explained that existing law already allows the Palestinian Authority to be sued for damages when it can be demonstrated that it transferred funds to an individual who carried out a terrorist attack. According to her, court precedents have established that even a single payment to a terrorist may be sufficient to create the legal connection required for liability. The ministry representative added that significant legal and factual questions remain regarding the Palestinian Authority’s direct connection to the October 7 massacre and whether any of the attackers had previously received payments from the PA. Based on information currently available, she said, many of the terrorists involved in the attack likely did not receive such payments, making it difficult to establish the legal link necessary to connect the frozen funds to those who participated in the massacre. {Matzav.com}

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matzav.com broke the news on Wednesday, June 17, 2026.
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