The Obama administration, just like the Bush administration before it, isn't interested in allowing a damages case against the Palestinian Authority for the murder of an American citizen, Esh Kodesh Gilmore, in 2000. Of course, the government shouldn't be the one to decide that sort of thing, you'd think, but the reality is that it does, even in the United States.
There's also the ironic twist, not mentioned in the news item, that Gilmore was murdered by Palestinians while guarding the East Jerusalem office of Bituach Leumi, the Israeli equivalent of Social Security - i.e, the place that pays large sums of money to Palestinians in East Jerusalem who aren't even Israeli citizens, as has been mentioned here in the past. Makes you wonder who the Palestinian murderer thought he was attacking.
Personally, I support the administration's position. Gilmore's murder was part of a political struggle, not a bank robbery, and the trial is intended to impinge upon a political process. The American government - a political entity through and through, by definition - wishes to keep the lawfare part out of the politics part. So long as they do so consistently, they're right. It would be pleasant for once to see our enemies squirming on the lawfare defendant's bench, but it wouldn't make the world a better place. Lawfare is a bad thing, no matter which side is doing it.