Three Republicans and Three Democrats Tell Rubio and Bessent to Press Israel to Release the Palestinian Authority's Withheld Tax Revenues — Warning That the West Bank's "Fiscal Collapse" Would Serve "Extremist and Iran-Backed Groups, Not Israel, Nor the United States"
On September 9, 2026, six members of the House — three Republicans and three Democrats — sent a letter to Secretary of State Marco Rubio and Treasury Secretary Scott Bessent urging the administration to press Israel to stop withholding billions of dollars in "clearance revenues," the customs and tax receipts Israel collects on the Palestinian Authority's behalf and has increasingly held back, pushing the PA toward insolvency. The letter was led by Reps. Brad Schneider (D-IL) and Craig Goldman (R-TX), co-chairs of the Congressional Abraham Accords Caucus, and co-signed by Republican Reps. Ann Wagner (R-MO) and Gus Bilirakis (R-FL) and Democratic Reps. Debbie Wasserman Schultz (D-FL) and Jimmy Panetta (D-CA). "Continued withholding of billions in clearance revenues risks accelerating the West Bank's fiscal collapse," the lawmakers wrote — "an outcome that would serve the interests of extremist and Iran-backed groups, not Israel, nor the United States." They asked Rubio and Bessent to work with Israel and the PA on "practical, security-conscious mechanisms that keep clearance revenues flowing to legitimate Palestinian institutions while ensuring none are diverted to terror financing," and argued that "despite its significant shortcomings and flaws, the PA remains the only current viable governing alternative to Hamas." The Times of Israel called it a rare bipartisan critique of Israeli policy from members who are otherwise among Israel's firmest supporters in Congress. The letter came as the administration was escalating its financial campaign against Iran's regional proxies — the State and Treasury departments launched "Operation Economic Outcast" against Hezbollah and Kata'ib Hezbollah financing on September 10 — and amid a separate fight over Israeli settlement policy with Britain. Neither the Israeli government nor the State Department had publicly responded as of September 11.
“Supporting Israel's security and defeating terrorist groups is central to America's foreign policy. Economic instability in the West Bank risks creating a vacuum that Hamas and other Iranian-backed terrorist organizations could exploit.”