The Obama administration has intervened in a lawsuit over Palestinian attacks that have killed Americans.
In a court filing, the U.S. government says a hefty bond requirement could financially destabilize the Palestinian government.
The filing comes in a case in New York City, where a jury this year awarded $218.5 million to survivors and victims' relatives. That amount is automatically tripled.
In the legal filing, Deputy Secretary of State Antony Blinken says the U.S. government supports the rights of terrorism victims to be compensated in court. But he says the U.S. also has "significant concerns" about any bond amount imposed in the case that could affect the operations of the Palestinian Authority.
Blinken says the collapse of the Palestinian Authority would undermine "several decades of U.S. foreign policy."