US Congress approved at the end of September a new law that enables Americans who have been hurt in Palestinian resistance attacks to prosecute the Palestinian Authority (PA), Israeli newspaper Haaretz reported.
Haaretz said that the new law "gives the American courts jurisdiction to seize assets from any entity that receives foreign assistance from the US."
It also said that the "legislation exposes the PA to potential lawsuits over past 'terrorism' and could even lead it to bankruptcy."
Israeli officials and Israeli media refer to the Palestinian resistance attacks against the Israeli occupation as terror acts.
The law was signed last week by the US President Donald Trump, according to Haaretz, and it is in line with America's plans to end financial assistance to the PA's security forces.
American citizens filed a complaint against the PA last year requesting compensation of $1 billion, but it was turned down by the Supreme Court.