The US Supreme Court building is seen the morning before justices are expected to issue opinions in pending cases, in Washington, DC, June 14, 2024. Photo: REUTERS/Elizabeth Frantz

The U.S. Supreme Court has declined to halt enforcement of a $656 million judgment against the Palestinian Authority (PA) and the Palestine Liberation Organization (PLO), marking a significant legal victory for American victims of Palestinian terrorism and their families.

The lawsuit was brought by victims their relatives under the Anti-Terrorism act, arguing that the PA and PLO bore responsibility for terror attacks because of their alleged support and involvement in violence carried out by Palestinian terrorist groups. A jury previously awarded hundreds of millions of dollars in damages to the plaintiffs.

The decision leaves intact a major financial judgment stemming from attacks carried out during the Second Intifada, a wave of Palestinian terrorism that targeted Israeli civilians and also claimed the lives of American citizens in Israel. The attacks killed 33 people in Jerusalem and injured hundreds more.

In filings before the Supreme Court, the PLO an PA argued that immediately paying the $656 million judgment would place severe financial strain on the Palestinian government and risk disrupting their ability to administer services in the West Bank. They pleaded with the court to pause enforcement of the judgement while they proceeded with their challenge of the verdict.

Critics of the PA, however, argue that concerns about financial hardship cannot outweigh the rights of the victims of the Second Intifada. Further, they point to the propensity of Palestinian institutions to glorify or reward violence against Israelis and others.

The Supreme Court’s decision does not represent the final conclusion of the broader appeal, but it allows the judgment to remain in place while legal proceedings continue. The ruling follows an earlier Supreme Court decision upholding legislation passed by Congress that expanded the ability of terrorism victims to seek compensation in U.S. courts.

In March, the US Court of Appeals for the Second Circuit appeals court initially reinstated the the $655.5 million against the PLO and PA, groups responsible for the notorious “pay-for-slay” terrorism program. In its opinion, the court recalled its previous mandate vacating the initial decision, writing that doing so was warranted by “intervening changes in underlying law.” The panel emphasized that appellate courts retained the authority to revisit earlier decisions in “extraordinary circumstances,” a standard it found satisfied in this case.

The Palestinian Authority, which exercises limited self-governance in the West Bank and has long been riddled with accusations of corruption, has for years carried out a so-called “pay-for-slay” program, which rewards terrorists and their families for carrying out attacks against Israelis.

Under this policy, official payments are made to Palestinian prisoners held in Israeli jails, the families of “martyrs” killed in attacks on Israelis, and Palestinians injured in terrorist attacks.

Reports estimate that approximately 8 percent of the PA’s budget has been allocated to paying stipends to convicted terrorists and their families

The next stage of the legal battle will focus on whether and how the plaintiffs can collect the judgment, including which assets may be subject to enforcement.