Palestinians ask US Supreme Court to halt $656m payment pending restitution case appeal

Key Points:

• Palestinian authorities have requested the US Supreme Court to temporarily halt a $656 million judgment against them in a lawsuit filed by Americans harmed in attacks in Israel, citing potential destabilization of government services and regional security risks.
• The lawsuit, initiated by victims of early 2000s Jerusalem attacks that killed 33 people and wounded hundreds, was revived by the Supreme Court in 2025 after years of litigation and changes to the Anti-Terrorism Act.
• The plaintiffs argue that the Palestine Liberation Organization (PLO) and Palestinian Authority (PA) are liable because the late PLO chairman Yasser Arafat allegedly funded attackers and their families, justifying the suit under US law targeting international terrorism.
• The 2nd US Circuit Court of Appeals reinstated the verdict in March, with plaintiffs expressing relief, while the Palestinian side warns that enforcing the judgment now could cause economic collapse amid ongoing Israeli restrictions.
• The Supreme Court’s unanimous ruling emphasized that US jurisdiction over the PLO and PA is part of a broader legal effort to deter international terrorism threatening American citizens.