Such a move would set the scene for potential legal action against Israel for war crimes and intensify pressure to pull out of Palestinian territory.
The Obama administration opposed Israel’s move to halt tax revenue payments, which totaled $127 million, as U.S. Secretary of State John Kerry continues negotiating efforts in hopes of preventing the Palestinian bid from moving forward, according to the U.S. Department of State.
"We conveyed to the Israelis that freezing the tax revenues is an action that raises tensions," State Department Spokesman Jen Psaki said on Monday. "We oppose to any actions that raise tensions and we call on both sides to avoid it.”
The Obama administration sees American assistance to the Palestinian Authority as important to maintaining stability in the region, Psaki added.
— Int'l Criminal Court (@IntlCrimCourt) January 5, 2015
On December 30, President Obama signed a stopgap funding bill that stipulates the termination of U.S. economic support to the PA, which amounts to $400 million annually, if it initiates an International Criminal Court (ICC) judiciary authorized investigation against Israel for alleged crimes against Palestinians.
In a conference held in Jerusalem, Israeli Foreign Ministry Director-General Nissim Ben Sheetrit said that Israel’s response to the Palestinian bid at the ICC would be much harsher and more comprehensive than freezing the PA’s tax revenues.
“Israel is about to switch from defense to attack mode,” he said.
Sheetrit also confirmed that Israel will not launch a new wave of settlements, undermine security operations with the PA or cause it to collapse.
The security cabinet is expected to meet later this week to decide on new measures.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said that “The Palestinian Authority has chosen to launch a confrontation with Israel,” stressing that Israel will respond.
“We won’t let them drag Israel Defense Forces soldiers and officers to The Hague,” said Netanyahu. “The ones who must give an accounting are the heads of the Palestinian Authority, who formed an alliance with the Hamas war criminals.”
Although the U.S. can use its executive power to veto any UN Resolution decision, since most of the new Republican-dominated Congress is considered pro-Israel, the PA’s request to the ICC has already prompted a reexamination of the PA’s American funding.
Defunding the PA has been on the congressional agenda since the formation of the Fatah and Hamas Palestinian national unity government last spring.

