
For many years, the Palestinian administration in the occupied West Bank has allocated hundreds of millions of dollars in financial support to the families of Palestinians imprisoned or killed by Israel, including individuals involved in violent actions.
Both the United States and Israel have consistently criticized these payments and urged the Palestinian Authority to discontinue them. On Monday, the Authority declared its intention to move away from this practice—an approach interpreted by analysts as a strategy to gain favor with President Trump and secure vital foreign assistance for the Palestinian territories.
Anonymous Palestinian officials revealed that this decision aims to align the Palestinian administration with U.S. law, which prohibits direct American economic support to the Palestinian Authority as long as the stipend system remains in place. This ban has exacerbated the economic challenges faced by the already struggling Palestinian Authority, which has had increasing difficulty in meeting its financial obligations and paying its employees’ salaries.
On Monday night, Mahmoud Abbas, the aging president of the Palestinian Authority, issued a decree reforming the payment system. The stipends have long been a contentious topic within Palestinian politics.
A newly established entity responsible for social welfare assistance, known as the Palestinian National Economic Empowerment Institution, stated that financial aid will now be provided to families of prisoners solely based on economic necessity and social welfare standards, disregarding political affiliations or prior activities.
