Palestinian Authority (PA) Chairman Mahmoud Abbas issued an order to restructure laws and regulations related to paying financial allocations to the families of Palestinians linked with terrorist activity, known as “pay for slay,” on Monday, according to Palestinian Authority state media WAFA.

According to the statement, the computerized cash assistance program, along with its database and financial allocations, will be transferred from Ramallah’s Social Development Ministry to the Palestinian National Institution for Economic Empowerment, WAFA stated.

The amendments will allow all families previously benefiting from the former laws, regulations, and legislations to be subject to the same eligibility criteria as other families enrolled in social protection and welfare programs, according to WAFA.

The Palestinian Institution for Economic Empowerment will now assume full authority over all social protection and welfare programs in Palestine. It will be responsible for providing assistance to all Palestinian families in need, without discrimination, WAFA added.

The Palestinian Institution for Economic Empowerment will work to mobilize funds, grants, and allocations for various segments of the Palestinian population, particularly given the significant increase in families requiring social care, support, and empowerment following the war in Gaza and the West Bank, WAFA added.

Palestinian women walk past a money changer in the West Bank city of Ramallah February 16, 2010. REUTERS/Mohamad Torokman/File Photo (credit: REUTERS/MOHAMAD TOROKMAN)

WAFA stated that “the goal is to strengthen Palestinian resilience, similar to social welfare systems adopted by other countries with strong and institutionalized social protection mechanisms.”

“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,” WAFA added.

“It also aims to safeguard national interests, address the growing humanitarian needs in Gaza—especially for children who have lost caregivers and displaced families—and restore international aid programs that were suspended in recent years,” according to WAFA.

“The decree seeks to support economic recovery and reconstruction programs, alleviate financial blockades, and put an end to Israel’s illegal deductions from Palestinian taxpayer funds, which have amounted to billions of shekels.” WAFA concluded.

Knesset legislation

According to current Knesset legislation, Israel can deduct amounts paid to prisoners from the tax money transferred to the PA. In 2024, Israel increased the amount deducted to NIS 21 million. N12 claimed that the PA asked the US to stop Israel from doing so.


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PA sources added that the release of about half of the 480 prisoners sentenced to life imprisonment in Israel, as part of the ongoing hostage-prisoner exchange, “creates an opportunity” to implement this reform.

Fines on the Palestinian Authority

This comes amid news that, on February, US courts will impose heavy fines – of about $200-300 million – on the Palestinian Authority – following lawsuits filed by families of terror victims. The PA is reportedly worried that this will lead to a financial crisis.

The Palestinian Authority arranged payment for families of dead Hamas terrorists amounting to a combined total of around $2.8 million, following the October 7 attacks, according to a report by the Palestinian Media Watch (PMW), a nongovernmental organization and media watchdog group.

However, according to a recent study conducted by the Jerusalem Center for Security and Foreign Affairs, in 2024, the scope of the PA’s pay-for-slay payments to terrorists decreased by 30-40%.







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