The Palestinian Authority (PA) has a treaty bound obligation to the US in which they are prohibited to bypass direct negotiations with Israel in favor of imposing a solution by outside bodies.
A unilateral declaration of independence is a fundamental breach of the Oslo Accords and other signed agreements, and could render them null and void. Article 31 of the Declaration of Principles, stated that: “Neither side shall initiate or take any step that will change the status of the West Bank and the Gaza Strip pending the outcome of the permanent status negotiation.”
The US government provides nearly $1 billion in annual aid to the PA. A substantial part of the foreign aid earmarked for the PA should immediately be frozen for willfully breaking a treaty obligation with the United States.