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The U.S. government has ceased all security assistance to the Palestinian Authority for training and equipment starting today, a U.S. embassy official told me.

Why it matters: The move coincides with the new anti-terrorism clarification law (ATCA) going into effect. The official said the U.S. security coordinator and his team will continue to conduct a security cooperation-only mission.

Between the lines: U.S. aid to Palestinian security forces was supposed to be $60 million for 2019.

  • An Israeli security official tells me Israel and the Trump administration are still trying to find a solution that will allow the renewal of U.S. aid to the Palestinian security forces.
  • The official added: "The cessation of U.S. security assistance will harm the ability of Palestinian security forces to function and could harm security coordination with Israel and create tensions on the ground."

Background: The Anti-Terrorism Clarification Act (ATCA) forces foreign organizations to be subject to the jurisdiction of U.S. courts if they accept certain forms of assistance from the U.S. government. It was signed by President Trump last October with the intention of ensuring the Palestinian Authority pays compensation to terror victims who won civil suits against the PLO in U.S. courts.

  • The Palestinian Authority said that accepting the conditions of the ATCA would open them up to billions of dollars in potential liabilities. For that reason, the Palestinians have asked the U.S. not to provide aid after the law goes into effect.
  • The law was pushed by right-wing nongovernmental organizations in Israel and Republican members of Congress. At the time it was signed, few in the Israeli government, Trump administration or Congress realized its potentially problematic consequences.
  • Last week we reported that the Israeli government has warned the Trump administration from the negative consequences of the law and asked to amend it.

Go deeper

Inflation threatens Latinos' buying power

Expand chart
Data: Hispanic Index of Consumer Sentiment; Chart: Jacque Schrag/Axios

Latinos in the U.S. are less optimistic about the economy than they were a year ago as inflation threatens to cut into their buying power.

Why it matters: Latinos have been economic growth drivers for the past decade, opening new businesses at faster rates than other groups and increasing their homeownership rates. The group's overall output would make them the seventh-largest GDP in the world if they were a country.

44 mins ago - Politics & Policy

First look: Frontline Dems seek cover with bipartisan police bill

Rep. Josh Gottheimer. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Moderate Frontline Democrats facing tough reelection fights are teaming up with House Republicans on a bill that would effectively help fund the police, according to a copy of the bill text obtained by Axios.

Why it matters: One of Republicans' core and most effective campaign attacks to date is their messaging around progressive rhetoric to "defund the police." Moderate Democrats have long tried to dodge that narrative, acknowledging its political peril despite their support for broader police reform.

Omicron pushes COVID deaths toward 2,000 per day

Expand chart
Data: N.Y. Times; Cartogram: Kavya Beheraj/Axios

The U.S. Omicron wave may be peaking, but now COVID deaths are climbing as cases continue to soar in most of the country.

The big picture: Omicron's stranglehold in the U.S. started about a month ago. Its death toll — while almost certain to be smaller than previous waves of the pandemic — is only now starting to take hold, and deaths will likely continue to rise for several weeks.