Payments to Terrorists
No Shortage of Funds for Terrorists
Abbas Rejects Trump Demands
The Taylor Force Act
Israel Adopts Anti-“Pay-for-Slay” Law
Concealing Payments
Financial Crisis
Released Prisoners Cashed In
The Terrorists Abroad Loophole
State Department Report

Payments to Terrorists

Though the Palestinians have repeatedly pledged to end terrorism and incitement – Yasser Arafat’s renunciation of terror was a prerequisite to the Oslo negotiations – the Palestinian Authority provides generous financial payments to terrorists and their families, creating incentives to attack Israelis.

According to laws passed in 2004 and amended in 2013, Palestinians and Israeli Arabs who are convicted of terrorism are entitled to monthly stipends. Men who have served at least five years in Israeli jails and women who have served at least two are entitled to these “salaries” for life. Those imprisoned for three to five years receive $570 per month. An individual sentenced to 30 years or more is entitled to $3,400 per month. The more heinous the crime, the more money a prisoner receives. The government also provides health insurance and tuition assistance to prisoners, their spouses, and their children. Families of terrorists who have died or been wounded receive $1,560 plus monthly checks for at least $364. Members of PLO factions arrested outside of “Palestine” are also entitled to benefits. Israeli Arabs and Arab residents of Jerusalem receive bonuses.

Upon release, prisoners are prioritized for employment. Any male ex-prisoner incarcerated for 10 or more years, and any female who served 5 years, are entitled to a position in the PA. All former prisoners’ social security and pension contributions are calculated based on the number of years they were imprisoned. If their salary is lower than what they received in prison, the PA makes up the difference. If a prisoner cannot be employed, they are still entitled to a monthly salary, disability payments, and death benefits payable to their families (Douglas J. Feith & Sander Gerber, “The Department of Pay-for-Slay,” Commentary, March 15, 2017; Thane Rosenbaum, “Palestinians are rewarding terrorists. The U.S. should stop enabling them,” Washington Post, April 30, 2017).

No Shortage of Funds for Terrorists

The PA, which has been in dire financial straits and is completely dependent on foreign aid for its survival, spends roughly $140 million on payments to terrorists who are in jail or have been released. In 2016, more than 32,500 families of martyrs received approximately $175 million in payments. The 2017 figure was $347 million, representing approximately 7% of the PA budget. On March 4, 2018, Palestinian Authority Chairman Mahmoud Abbas approved the PA’s 2018 budget of approximately $5 billion. Roughly 7% of the budget (approximately $360 million) is allocated to two institutions that assist terrorists imprisoned in Israel, released terrorists, and families of “martyrs.” The institutions are the Commission of Detainees and Ex-Detainees Affairs, the Fund for Families of Martyrs and the Injured.

The United States and some European countries have realized they are underwriting this “pay-for-slay” policy and called on Mahmoud Abbas to cease these payments. During their meeting in Bethlehem on May 23, 2017, President Donald Trump told Abbas to end the program, reiterating the demand he had made in their May 3 meeting at the White House (Nathan Guttman, “How Payments To Terrorists Became An Issue At The Trump-Abbas Meeting,” Forward, May 4, 2017; Jack Moore, “Trump Raged At Palestinian Leader Mahmoud Abbas In Bethlehem Meeting: ‘You Lied To Me,’” Newsweek, May 29, 2017).

On June 13, 2017, Secretary of State Rex Tillerson told senators that pressure from the president led the PA to change its policy. Palestinian officials, however, quickly denied Tillerson’s claim. “There is no end to the payments” of Palestinian prisoners, declared Issa Karake, head of the Palestinian Committee of Prisoners’ Affairs. “We reject ending the subsidies to the prisoners and families of martyrs. We will not apologize for it” (Dov Lieber, “Defying US, Palestinian official vows payments to terrorists will continue,” Times of Israel, June 14, 2017).

Abbas Rejects Trump Demands

According to Karake, Abbas told Trump he would not “stop the allowances of the families of the prisoners and Martyrs (Shahids), and emphasized his absolute support for them (i.e., for the payments).” Other Palestinian officials commented similarly (Itamar Marcus and Nan Jacques Zilberdik, “Did the PA lie to the US Secretary of State?” Palestinian Media Watch, June 14, 2017).

Following the Palestinian statements, Tillerson modified his testimony before a House committee on June 14, 2017, saying the United States was engaged in an “active discussion” on the payments and that “we’ve taken the position to the Palestinian Authority in a very unequivocal way.” Tillerson said he told the Palestinians, “You either take care of this yourself or someone else will take care of it for you” (Eric Cortellessa, “Tillerson waters down statement that Palestinians ‘changed policy’ of terror payments,” Times of Israel, June 14, 2017).

In a meeting with Palestinian officials on June 20, 2017, Trump’s envoy, Jason Greenblatt, reiterated the demand that the Palestinians cease payments to the so-called Martyr’s Fund. A Palestinian official said the meeting was unsuccessful and that the request was rejected (Kushner kicks off Mideast peace push with first solo visit, Associated Press, June 21, 2017).

Abbas, however, not only refuses to halt the stipends to terrorists, he has increased the amount allotted to them and their families in 2018 by nearly $56 million (Itamar Marcus, “PA defies US, will raise payments to Martyrs’ families,” Palestinian Media Watch, April 9, 2017; “Abbas will continue to pay Palestinian prisoners, PA minister says,” Times of Israel, April 29, 2017; Lahav Harkov, “Palestinians Increase Payments To Terrorists To $403 Million,” Jerusalem Post, March 6, 2018).

The Taylor Force Act

Angered by the Palestinians’ use of American tax dollars to fund terror attacks that have killed Americans as well as Israelis, Congress passed legislation to cut U.S. funding to the Palestinian Authority – now approximately $400 million annually – if it continues the “pay-for-slay” policy. The Taylor Force Act is named for Taylor Force, an American Army veteran who was stabbed to death by a Palestinian terrorist in Jaffa. The bill was signed into law on March 23, 2018.

Israel will deduct the amount of money that the Palestinian Authority gives to terrorists and their families from the taxes and tariffs Israel collects for the authority after the Knesset passed the Anti-“Pay for Slay” bill into law on July 2, 2018 (Gil Hoffman, “Historic Anti-Pay For Slay Bill Passes Into Law,” Jerusalem Post, July 2, 2018).

The government of Australia also stopped giving direct aid to the Palestinian Authority due to concerns that the money is being used to pay Palestinian terrorists and their families (“Australia ends direct aid to Palestinian Authority, citing payments to terrorists,” JTA, July 2, 2018).

Undeterred by the criticism, the PA has continued to pay terrorists. In July 2018, for example, a Palestinian terrorist who murdered a 31-year-old Israeli and wounded two other people was designated as a “martyr,” making him eligible for a one-time grant and a monthly salary (Shiri Moshe, “Family of Palestinian Who Killed Israeli Father Expected to Receive $1,600 Grant, Monthly Salary as Reward,” theAlgemeiner, July 31, 2018).

Israel Adopts Anti-“Pay-for-Slay” Law

In February 2019, Israel implemented one part of the 2018 anti-“Pay-for-Slay” law and started to deduct the sum the PA spent in 2018 paying salaries to terrorist prisoners and released prisoners from the 2019 tax revenues Israel collects and transfers to the PA. Abbas subsequently said he would refuse to accept any of the money “if Israel deducts even one penny from it.”

Abbas may have expected the international community to address the shortfall and pressure Israel to reverse its position, but this did not occur. For example, EU Commissioner for European Neighborhood Policy & Enlargement Negotiations Johannes Hahn said, “We are all aware of the fiscal crisis the PA is facing and of the potential human, social and security consequences...At the same time, we do not support the system of Palestinian payments to ‘prisoners and martyrs.’”

As the negative impact of losing tens of millions of dollars in revenue became clear, Abbas agreed in August 2019 to accept two billion shekels and, in October, another 1.5 billion shekels (Maurice Hirsch and Itamar Marcus, “PA capitulates to Israel’s anti-‘Pay-for-Slay’ law,” PMW, October 6, 2019).

Despite the economic hardship, the PA distributed approximately $148 million to prisoners in 2019, a 3% increase from 2018. The overall expenditures of the PA ministry for prisoners and released prisoners amounted to approximately $173 million (Yossi Kuperwasser, “If the PA Lacks Funds to Combat the Coronavirus, It Should Stop Paying Salaries to Terrorists,” JCPA, March 27, 2020).

According to the Director of the ‎Commission of Prisoners and Released Prisoners’ Affairs, Qadri Abu Bakr, a prisoner can receive a salary after release and do nothing. He said, “We have 7,000-8,000 ‎released prisoners who are receiving a salary like this.”‎

Though idle, they still qualify for benefits. ‎“Every prisoner who is released after a year is eligible to study at university ‎and also carpentry, metalworking, and the like,” said Abu Bakr. “Any profession that we can ‎cover for him. We are also covering dental treatment up to 5,000 [Israeli] ‎shekels. We cover implants.”

In September 2020, Abu Bakr received permission from Abbas to employ the former prisoners who are not working in the “Security Forces, or in the ‎governmental ministries, the institutions of the PA, and its authorities” (Maurice Hirsch, “Abbas’ latest joke: Appoint terrorists to fight terror,” PMW, October 1, 2020).‎

The Palestinians were upset when the International Criminal Court released a report in October 2020 by the chief prosecutor that warned that Palestinian stipends to attackers and their families could constitute a war crime (“Palestinians outraged over ICC report into war crimes,” Al Arabiya, October 14, 2020).

News reports suggested the Palestinians were considering changing their policy to win favor with the incoming Biden administration; however, PalestinianPrime Minister Mohammed Shtayyeh said on November 17, 2020, “We will continue to pay aid to the families of martyrs and prisoners to ensure a decent life for their families, and we will not abandon them” (WAFA, November 17, 2020).

Concealing Payments

To avoid scrutiny, the PA has been trying to hide expenditures to terrorists under different budget categories. According to Palestinian Media Watch (PMW):

In 2018 and 2019, the PA monthly budget performance reports clearly listed the transfer expenditures of the “Ministry of Prisoners’ Affairs,” which was primarily the payments to terrorist prisoners, as 502 ($156 million - exchange rate for Dec. 31, 2020) and 517 million ($161 million) shekels, respectively. In 2020, the budget category of the “Ministry of Prisoners’ Affairs” (later by the PA called the Commission for Detainees’ Affairs) was removed altogether. However, throughout 2020, numerous statements by PA and PLO officials confirmed that the PA continued to pay hundreds of millions of shekels a year in terror rewards. Consequently, it was clear that the PA had decided to pay terrorists in a roundabout way so that there would be no reference to the salaries at all in their budget.

PMW examined PA financial reports and determined that at least $159 million was transferred to terrorists and their families in 2020. This was 3.25% of the PA’s total budget (Maurice Hirsch, Itamar Marcus, and Nan Jacques Zilberdik, “How much did the PA spend on terrorists' salaries in 2020?” PMW, February 22, 2021).

PMW underestimated the payments. PLO Commissioner for Prisoners’ Affairs Qadri Abu Bakr stated that the PA spends approximately $15 million per month on salaries, totaling close to $181 million for 2020. Abu Bakr said 7,500 released Palestinian prisoners receive payments, as do 4,500 who are still incarcerated.

To make it more difficult, starting in 2021, Israel imposed sanctions on banks that allow Palestinians to collect payments. In late December, the PLO paid prisoners’ salaries three months in advance to circumvent the sanctions while exploring other options (Aaron Boxerman, “PLO says $15 million per month being paid in terror stipends,” Times of Israel, March 4, 2021).

Following the passage of an Israeli law that would expose them to criminal and civil liability, banks in the PA closed 35,000 bank accounts of imprisoned terrorists, released terrorists, and families of dead terrorists. This did not stop the PA from continuing payments. On April 5, 2021, the Commission of Prisoners’ Affairs said the salaries would be paid through the Palestinian post office branches, which recipients complained involved a “humiliating” process (Maurice Hirsch and Itamar Marcus, “PMW caused the closure of 35,000 bank accounts of terrorists,” Palestinian Media Watch, May 5, 2021; “Palestinians complain of ‘humiliating’ wait at [the] post office to collect PA terror stipends,” JNS, June 18, 2021). In July, Israel announced it would withhold $180 million in tax revenue it collected on behalf of the PA in 2020, or about 7 percent of the PA’s total tax revenue, to offset payments to terrorists (“Israel to Withhold $180 Million in Palestinian Funds Over Militant Stipends,” Reuters, July 11, 2021).

In 2021, the PA was in dire financial condition as much of the foreign aid it depended on for survival dried up. Nevertheless, the PA still paid roughly $193 million to prisoners and released terrorists and another $78 million to wounded terrorists and the families of dead terrorists. Due to international pressure and scrutiny, the PA tried to conceal the payments by integrating released terrorists into PA ministries, developing a new payment system to circumvent the banks that refuse to provide services to terrorists, and manipulating published PA financial reports to mask the payments (Maurice Hirsch, “Three ways the PA tried to hide its terror reward payments in 2021,” Palestinian Media Watch, February 9, 2022).

Israel’s High Court of Justice ruled on April 10, 2022, that the decision to pay convicted Palestinian terrorists and those killed as part of the “struggle against Israel” makes the PA liable for their actions. According to the ruling, however, the PA can be sued only for compensatory damages, not punitive damages.

Four families who lost loved ones in four separate terror attacks during the Second Intifada had petitioned the court after the Jerusalem District Court rejected their claim. The case will now be returned to the Jerusalem District Court, which will determine the compensation owed to the families by the PA (“High Court: PA liable for terrorism due to money it pays attackers; victims can sue,” Times of Israel, April 10, 2022).

In May 2022, Abbas again reaffirmed his commitment to continue the “Pay-for-Slay” payments (Khaled Abu Toameh, “On ‘Nakba,’ Abbas vows to continue payments to prisoners and ‘martyrs,’” Jerusalem Post, May 15, 2022). At the end of June, the PA reported approximately 4,650 prisoners were held in Israeli jails; the number who have served more than 20 consecutive years had increased from 112 to 233 (Maurice Hirsch, “As Biden meets with Abbas, Abbas raises the salaries of hundreds of terrorists,” Palestinian Media Watch, July 12, 2022).

Israeli citizens Karim and Maher Younis were released from prison in January 2023 after serving 40-year sentences for murdering an Israeli soldier. During their incarceration, they each received nearly $100,000 from the PA (Charles Bybelezer, “Karim and Maher Younis the highest-paid Israeli Arab terrorists, says NGO,” JNS, January 19, 2023).

Testifying before Congress on May 31, 2023. Assistant Secretary of State for Near Eastern Affairs Barbara Leaf said, “We are working to bring pay-to-slay to an end. Period.” She added, “We abhor prisoner payments, and we have raised these concerns repeatedly to the Palestinian leadership.” When asked if the administration had succeeded, Leaf replied, “not yet.” In response to a question about whether U.S. aid violated the Taylor Force Act, Leaf insisted, “We are fully compliant with the Taylor Force Act. No money goes to the Palestinian authority” (Andrew Bernard, “‘They Are Paying for Terrorists to Murder’: State Department Confirms Palestinians Continue ‘Pay-to-Slay’ Terrorist Payments,” Algemeiner, May 31, 2023).

The PA continues to make payments despite a substantial budget deficit, expecting international donors to cover the shortfall. The 2023 budget included a deficit of $610 million (Maurice Hirsch, “PA defies the world to continue terror reward payments,” Palestinian Media Watch, April 30, 2023).

The UK provides funding to the Palestinian Authority, which can also subsidize terror. The government rejected a request from two NGOs for information on how it ensures its funding does not incentivize terrorism. It said: “The disclosure of information detailing the audit reports of the Palestinian Recovery and Development Programme could potentially damage the bilateral relationship between the UK and Palestine. This would reduce the UK government’s ability to protect and promote UK interests through its relations with Palestine, which would not be in the public interest” (Lahav Harkov, “UK refuses to disclose audit of aid to Palestinian Authority,” Jerusalem Post, July 11, 2023).

Some European countries were beginning to scrutinize more carefully how their aid is spent. In October 2023, for example, Switzerland announced it was suspending support for six Palestinian and five Israeli human rights organizations to investigate whether they were complying with the Federal Department of Foreign Affairs code of conduct (“Switzerland suspends funding of 11 Palestinian and Israeli NGOs,” SWI, October 25, 2023).

Financial Crisis

Based on PA law, the families of 1,500 Hamas terrorists who infiltrated Israel on October 7, 2023, and massacred hundreds of civilians will be eligible for a $1,511 grant and $353 per month for life. Captured terrorists will also receive monthly salaries (Itamar Marcus, “PA will pay $2,789,430 to families of 1,500 dead Hamas terrorist murderers, this month,” Palestinian Media Watch, October 15, 2023). In January 2024, the PA added 3,550 new prisoners, including 661 Hamas terrorists, to the list of those eligible for salaries. In addition, Gazans killed in the war are regarded as martyrs, entitling their families to a lump sum payment and a lifetime monthly stipend (Editorial Board, “Palestinian ‘Pay for Slay’ Keeps Growing,” Wall Street Journal, January 15, 2024).

By July 2024, the number of prisoners eligible for funding more than doubled from 4,300 to 9,750; this included 899 terrorists captured by Israel during the war in Gaza. In addition, nearly 40,000 martyr families were eligible for awards. PMW estimates monthly payments would increase from $14.3 million before Oct. 7 to $16.4 million at a time when the PA was in danger of financial collapse (Itamar Marcus and Ephraim D. Tepler, “Palestinian Authority recognition makes 899 Gazans eligible for Pay-for-Slay,” Palestinian Media Watch, July 23, 2024).

Despite the ongoing financial crisis caused in part by donations from abroad, which the PA depends on, the funding of terrorists remains unchanged. At the same time, payments to civil servants are cut by 50%. Muhammad Hamida, Economy Ministry Director in Bethlehem, explained:

While we as [public] employees received a salary at a rate of 50%, before the [Gaza] war, the families of the prisoners and Martyrs (i.e., terrorists) received a full salary. The Palestinian leadership remains committed to this. It deducted amounts from regular employees and gave a full salary to the families of the prisoners and Martyrs. Today, everyone is equal. The salaries that the families of the Martyrs and prisoners receive are also received by the employees. We are proud of the prisoners and their families as well as of the Martyrs and their families... This is a national question, a very important one, and it is a priority. No one in Palestine complains about why the families of the prisoners and the Martyrs get full salary and we get half (Official PA TV, July 16, 2024, translated by Itamar Marcus and Ephraim D. Tepler, “Palestinians approve paying terrorists more than civil servants – PA official,” Palestinian Media Watch, July 22, 2024).

The European Union is providing a bailout of nearly $450 million aimed at helping citizens, but will subsidize Pay-for-Slay (Tepler and Marcus, “In debt because of Pay-for-Slay: Palestinian Authority welcomes new round of EU funding,” Palestinian Media Watch, September 12, 2024).

Released Prisoners Cashed In

As part of the ceasefire in Gaza, Israel agreed to trade imprisoned terrorists in return for hostages held by Hamas and Palestinian Islamic Jihad. Dozens of murderers were released for each hostage. The 734 terrorists Israel agreed to exchange were receiving monthly salaries from the PA. The totals for their incarceration ranged from $784 to $631,176. Together, the group received more than $141 million (Itamar Marcus, “How much money did each freed terrorist receive from the Palestinian Authority?” Palestinian Media Watch, January 30, 2025).

In an apparent move to appease President Trump, Abbas ordered the end of the “pay-for-slay” program. Those eligible for funds would now be eligible for assistance solely on the basis of their financial needs, as is the case for other Palestinians. The funds will be distributed through the Palestinian Institution for Economic Empowerment. According to the Palestinian Authority state media WAFA, “This decision aligns with efforts to enhance the status of the State of Palestine, strengthen its legal position within the United Nations and other international institutions, and secure further international recognition and full UN membership” (“Palestinian Authority restructures ‘pay-for-slay’ policy for West Bank terrorists,” Jerusalem Post, February 10, 2025).

The policy change was also aimed at stopping Israel from deducting money from Palestinian tax revenues. Israel, however, dismissed the decree “as a new fraudulent exercise by the PA, which intends to continue making payments to terrorists and their families through other channels.”

According to the Times of Israel, “While the effort to reform the PA prisoner payment system has been in the works for years, and was largely finalized under the Biden administration, Ramallah decided to hold off on announcing the move, preferring to save it as a goodwill gesture for the incoming Trump administration” (Jacob Magid, “In major win for Trump, PA’s Abbas signs decree ending ‘pay-to-slay’ system,” Times of Israel, February 10, 2025).

The PA has not stopped paying imprisoned terrorists, but due to U.S. pressure, it said it would fund these payments from a different account that also covers welfare recipients. Despite the change, the salaries for imprisoned terrorists will likely remain high, and the PA’s law regarding this funding remains ambiguous. Terrorists in prison currently receive between 1,400 and 12,000 shekels per month, while welfare benefits for those in need range from 250 to 600 shekels. The PA continues to prioritize terror payments over welfare, with the highest terror salary being up to 48 times the amount for welfare recipients. This shift was driven by financial pressures rather than by a change in the PA’s stance on terrorism, as it faces a severe economic crisis and requires U.S. funding to cover its debts. The actual impact on terror payments remains to be seen (Itamar Marcus, “Did the Palestinian Authority stop paying imprisoned terrorists?” Palestinian Media Watch, February 12, 2025).

The praise for Abbas proved premature. He reassured his comrades on the Fatah Revolutionary Council: “Even if we have one penny left, it is for the prisoners and martyrs. I will not agree, and you will not agree, to reduce any obligation, any interest or any penny given to them. They must receive everything, as it was in the past, and they are more precious than all of us!” (Editorial Board, “Palestinian ‘Pay-for-Slay’ Rises Again,” Wall Street Journal, February 26, 2025).

On February 25, 2025, Israeli Defense Minister Israel Katz announced the imposition of sanctions on security prisoners and their families who are Israeli citizens or residents receiving funds from the PA for terror-related activities. Security forces raided their homes, confiscating assets worth hundreds of thousands of shekels. Additionally, Israel froze NIS 470 million in PA funds, reallocating them to compensate terror victims. Katz condemned the PA’s payments as “blood money” that fuels terrorism, vowing to combat it militarily, economically, and on all necessary fronts (“Katz imposes sanctions on security prisoners who receive PA funding,” Jerusalem Post, February 25, 2025).

Despite PA claims that it ended its “Pay-for-Slay” policy, Palestinian Media Watch reported that on October 25, 2025, the PA resumed payments. To conceal the move from international donors, the PA made no public announcement and delayed disbursements so recipients would believe the program had ended. This followed the PA's announcement on September 1, 2025, to donor countries that the program was officially terminated.

According to the PA’s last published budget—before the Gaza War—it spent over $30 million per month on payments to terrorists. Since the war, the number of imprisoned terrorists has doubled from 4,500 to 9,100, and thousands of new “martyr” families have been added to the payroll. The EU pledged €150 million on June 23, 2025, to help the PA pay salaries. Because PA funds are fungible, the EU’s contribution effectively frees up other money for the terrorist stipends (Itamar Marcus, “Pay-for-Slay continues,” Palestinian Media Watch, October 26, 2025).

PMW reported that 160 of the terrorists who were serving at least one life sentence for murder and were released in exchange for Israeli hostages held by Hamas are now millionaires. The PA paid them at least 229.5 million shekels ($70 million) during their imprisonment. This excluded additional payments made to the terrorists for spouses or children (Ephraim D. Tepler and Itamar Marcus, “160 new Palestinian terrorist millionaires – thanks to Pay-for-Slay,” Palestinian Media Watch, October 15, 2025).

The Terrorists Abroad Loophole

PMW reported that the PA continued to make payments to terrorists’ families outside PA-controlled areas, beyond U.S. and EU donor oversight, with families in Jordan, Syria, and Lebanon confirming receipt of salaries in January 2026.

PMW showed that the PA admitted in its 2017 budget that it maintained a foreign branch system to pay 13,500 “martyrs and wounded” families abroad. At the PA’s minimum rate of 1,400 shekels per family, this amounted to at least $6.1 million per month in overseas terror payments—a figure that is likely higher today due to increased recipients and higher family stipends.

According to PMW, the PA evades donor scrutiny by routing these foreign payments through the PLO rather than through the PA’s prisoner-payment bodies, exploiting the fact that donors monitor PA budgets but not PLO transfers. In 2025, the PA transferred about 269 million shekels ($87 million) to the PLO—an average of nearly $7.3 million per month—listed as “transfer expenses,” closely matching the scale of the foreign Pay-for-Slay payments identified in 2017.

PMW highlighted the case of Ahlam Tamimi, the Sbarro bombing mastermind exiled to Jordan, who continues to receive monthly PA payments under PA law, illustrating how notorious terrorists benefit from the system abroad without oversight (Itamar Marcus, “Palestinian Authority just paid 18.9 million shekels in Pay-for-Slay, hidden from US and EU scrutiny,” Palestinian Media Watch, January 28, 2026).

State Department Report

The State Department formally determined that the Palestinian Authority paid more than $200 million to terrorists and their families in 2025, despite Mahmoud Abbas’s public claim that he had ended the “pay-to-slay” program. According to a nonpublic notice sent to Congress, the PA “continued the payments to Palestinian terrorists and their families during the reporting period,” even after announcing reforms.

Rather than ending the program, the State Department found that the PA rebranded and concealed it by shifting responsibility to a new entity. “The old Palestinian system of compensation for Palestinian terrorists and the families of terrorists killed… gradually transferred responsibility for compensation to the Palestinian National Foundation for Economic Empowerment (PNEEI) under the guise of social welfare,” the notice states. “Despite changing the mechanism for doing so, the PA continued the payments.”

Israeli intelligence assessed that the PA funneled $144 million in 2024 and committed at least $214 million through 2025, while the State Department confirmed that payments continued from March through August 2025 under the so-called welfare system. U.S. investigators documented that the PA used post offices, social media, and encrypted messaging platforms like Telegram to notify recipients that funds were available, “indicating clearly that compensation in support of terrorism has continued.”

The State Department rejected the PA’s claim that the new framework complies with U.S. law. “A shift to a potential welfare system without ending specific payments and benefits for Palestinian terrorists and their families is not compliant with the provisions under the Taylor Force Act,” the notice stated. It concluded bluntly: “The PA continues to provide a system of compensation in support of terrorism through a new mechanism under a different name.”

The notice also found that the PA continues to enforce laws mandating monthly payments to terrorists and their families. One statute, Law No. 14, requires the PA to support imprisoned terrorists “by paying them the equivalent of their most recent monthly salaries prior to imprisonment.”

Abbas’s credibility was further undercut by his own words. After announcing the program’s termination in February 2025, he later told the Fatah Revolutionary Council that “even if we only have one cent left, it will be for the prisoners and martyrs.”

Taken together, the State Department concluded that the PA’s supposed reform was cosmetic, not substantive—leaving the pay-to-slay system fully intact, legally mandated, and deliberately hidden from donor scrutiny (Adam Kredo, “Palestinian Authority Promised Terrorists More Than $200 Million in ‘Pay-To-Slay’ Payments After it 'Scrapped' Program, State Department Tells Congress,” Washington Free Beacon, January 28, 2026)..

Palestinian Authority Financing of Terrorism