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Supreme Court Declines to Halt $656 Million Judgment Against Palestinian Authorities

8/4/2026, 3:52:33 AM

Supreme Court Decision

On July 27, 2026, Justice Sonia Sotomayor denied a request from the Palestine Liberation Organization (PLO) and the Palestinian Authority to pause enforcement of a multi-hundred-million-dollar judgment. The order, issued without explanation and without referral to the full Court, leaves in place the damages awarded to American plaintiffs who were killed or injured in attacks in Israel between 2002 and 2004.

Legal Background and the 2019 Terrorism Act

The lawsuit was originally filed in New York federal court in 2015 under the Anti-Terrorism Act, which permits U.S. victims of international terrorism to sue foreign entities. After an initial verdict was tossed by the 2nd U.S. Circuit Court of Appeals in 2016, Congress passed the Promoting Security and Justice for Victims of Terrorism Act in 2019. That law automatically “consents” the PLO and the Palestinian Authority to U.S. jurisdiction when they conduct certain activities in the United States or make payments to individuals who attack Americans. The Supreme Court upheld the 2019 law in a 9-0 decision in June 2025, and the 2nd Circuit reinstated the judgment in March 2026.

Palestinian Authorities’ Concerns

In court filings, the PLO and the Palestinian Authority argued that enforcing the judgment would cause severe financial harm, destabilizing essential services in the West Bank.

Conflicting Figures on Judgment Amount

Reuters reported the judgment as $655.5 million, while ABC News cited a $656 million figure. Both outlets describe the same court order but differ by half a million dollars in the reported total.

Next Legal Steps

The Palestinian authorities plan to continue appealing the reinstated verdict, seeking relief from the financial burden while the plaintiffs consider further enforcement actions. The Supreme Court’s refusal to stay the judgment leaves the enforcement process open, with potential collection efforts focused on assets linked to Palestinian tax revenues.