Israel has proposed using billions of dollars in clearance revenues it is withholding from the Palestinian Authority to pay for clearing rubble and supporting humanitarian operations in Gaza, according to a Palestinian official. The Palestinian Authority strongly opposes these proposals, arguing that Israel has no right to use funds collected on its behalf for rebuilding areas destroyed during the war and for covering controversial humanitarian activities.

The withheld funds, which are supposed to be transferred monthly under previous agreements, have created a severe financial crisis for the Palestinian Authority. Israel has cited concerns over the potential seizure of funds by Hamas and payments to families of security prisoners as reasons for the ongoing withholding. Despite pressure from the United States to release the money, Israeli leadership has not moved forward with any changes, and the situation remains unresolved.