By Staff, Agencies 

The US Supreme Court has rejected a request by the Palestinian Authority [PA] and the Palestine Liberation Organization [PLO] to suspend enforcement of a $655.5 million judgment compensating American families whose relatives were victims of terrorist attacks in Israel in the 2000s.

On Monday, Justice Sonia Sotomayor denied the application filed by the Palestinian organizations without comment or referring it to the full court, Courthouse News Service reported.

In their appeal, the PA and PLO argued that the massive payout “would plunge the Palestinian economy into a deep recession, including a sudden dramatic increase in the already high unemployment rate, and failure of critical social services.” They added that it would likely trigger “widespread violence” in the West Bank.

“Immediate enforcement would devastate the remaining public safety, security, the judicial system, health care, public schools, public works, communications, transportation, and reconstruction,” the PLO wrote.

The West Bank is facing an acute financial crisis as “Israel” withholds billions in tax revenue that it collects on behalf of the PA. These transfers normally account for around 60% of the PA’s budget.

Palestinian Finance Minister Estephan Salameh has described the withholding of funds as a “financial siege” imposed by “Israel”. He said in February that this year would be “the most financially difficult” since the PA was established in the early 1990s.