Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
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Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)

The Palestinian Authority said on Tuesday it will pay public sector workers 60% of their December salaries this week as it grapples with the long running fallout of Israel's refusal to transfer tax funds earmarked for Gaza.

Funding to the Palestinian Authority, the body which exercises limited governance in the occupied West Bank, has been severely restricted by the months-long dispute over transferring tax revenues Israel collects on behalf of the Palestinians.

Funding from international donors has also been squeezed, falling from 30% of the $6 billion annual budget to around 1%, Palestinian Prime Minister Mohammad Shtayyeh said.

"The funding situation of the Authority is very difficult," he said, following a meeting of the cabinet.

The funding dispute has been a source of friction between Israel and the Palestinians since the start of the war in Gaza in October, when Israeli Finance Minister Bezalel Smotrich refused to release all the funds, accusing the PA of supporting the Oct. 7 attack in Israel led by the Islamist movement Hamas.

Under interim peace accords signed in the early 1990s, Israel collects taxes on the Palestinians' behalf and typically transfers them to the PA monthly on the approval of the finance minister.

However, transfers have been stalled since October, when Smotrich withheld around 600 million shekels ($164.51 million) of the total 1 billion shekels due for transfer, prompting the Palestinian Authority, which says Gaza is an integral part of Palestinian territory, to refuse to accept any funds.

"We cannot accept conditions on our money. We will remain committed to the prisoners and martyrs and to our people in the Gaza Strip, not out of favor, but by virtue of our national, religious and moral responsibility," Shtayyeh said.

Although Gaza is controlled by Hamas, the Palestinian Authority continues to fund essential areas of the blockaded enclave's budget including paying the salaries of health workers.

The dispute comes ahead of a visit by US Secretary of State Antony Blinken, who has pressed Israel to resolve the budget dispute, which has left thousands of Palestinian public sector workers without pay for months.

The dispute over the Palestinian Authority budget coincides with a separate dispute over funding to UNWRA, the United Nations agency which pays for emergency relief for Palestinians.

Much of the UNWRA budget has been cut off since Israel accused 12 of the agency's 13,000 Gaza workers of involvement in the Oct. 7 attack. The claims came as Israel faced a genocide case at the International Court of Justice over its war on Gaza, and after years of it calling for the agency to be disbanded.



Suspected US Airstrikes Kill at Least 6 People in Yemen

Light breaks through the sky as US airstrikes strike a plastic materials factory on the outskirts of Sana'a, Yemen, 13 April 2025. EPA/YAHYA ARHAB
Light breaks through the sky as US airstrikes strike a plastic materials factory on the outskirts of Sana'a, Yemen, 13 April 2025. EPA/YAHYA ARHAB
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Suspected US Airstrikes Kill at Least 6 People in Yemen

Light breaks through the sky as US airstrikes strike a plastic materials factory on the outskirts of Sana'a, Yemen, 13 April 2025. EPA/YAHYA ARHAB
Light breaks through the sky as US airstrikes strike a plastic materials factory on the outskirts of Sana'a, Yemen, 13 April 2025. EPA/YAHYA ARHAB

Suspected US airstrikes around Yemen's Houthi-held capital killed at least six people and wounded 26 overnight, the Houthis said Monday as they also claimed shooting down another American MQ-9 Reaper drone.

Since its start nearly a month ago, the intense campaign of US airstrikes under President Donald Trump targeting the Houthis over their attacks on shipping in Mideast waters — related to the Israel-Hamas war — has killed over 120 people, according to casualty figures released Monday by the Houthis' Health Ministry.

Footage aired by the Houthis' al-Masirah satellite news channel showed firefighters spraying water on a raging fire they described as being sparked by the airstrikes. Rubble littered a street as rescuers carried one person away from the site, which the group claimed was a ceramics factory in the Bani Matar neighborhood of Sanaa, the capital.

The US military’s Central Command, which oversees American military operations, did not acknowledge the strikes. That follows a pattern for the command, which now has authorization from the White House to conduct strikes at will in the campaign that began March 15.

The American military also hasn’t been providing any information on targets hit. The White House has said over 200 strikes have been conducted so far.

Houthis claim another American drone shot down

The Houthis separately claimed Sunday night they shot down an MQ-9 Reaper drone over Yemen's Hajjah governorate, which sits to the northwest of the country on the Red Sea on the country's border with Saudi Arabia.

Brig. Gen. Yahya Saree, a Houthi military spokesman, described the downing in a prerecorded video message as the fourth in two weeks by the group. Saree said the Houthis targeted the drone with “a locally manufactured missile.” They have surface-to-air missiles — such as the Iranian missile known as the 358 — capable of downing aircraft.

Iran denies arming the group, though Tehran-manufactured weaponry has been found on the battlefield and in sea shipments heading to Yemen for the Shiite Houthi group despite a United Nations arms embargo.

General Atomics Reapers, which cost around $30 million apiece, can fly at altitudes over 40,000 feet (12,100 meters) and remain in the air for over 30 hours. They have been flown by both the US military and the CIA for years over Afghanistan, Iraq and now Yemen.

Central Command said it was aware of “reports” of the drone being shot down, but did not elaborate.

US strikes come as part of monthlong intense campaign

An AP review has found the new US operation against the Houthis under President Donald Trump appears more extensive than that under former President Joe Biden, as Washington moves from solely targeting launch sites to firing at ranking personnel and dropping bombs on cities.

The new campaign of airstrikes started after the Houthis threatened to begin targeting “Israeli” ships again over Israel blocking aid entering the Gaza Strip. The group has loosely defined what constitutes an Israeli ship, meaning many vessels could be targeted.

The Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors from November 2023 until January of this year. They also launched attacks targeting American warships without success.

The US campaign shows no signs of stopping, as the Trump administration has also linked its airstrikes on the Houthis to an effort to pressure Iran over its rapidly advancing nuclear program.