Palestinian Authority Cancels Stipends for Terrorists' Families, Moves to Reform Welfare System

Palestinian Authority (PA) President Mahmoud Abbas signed a decree on Monday to cancel legislation that previously conditioned welfare payments to Palestinian security prisoners on the length of their sentences and provided stipends to families of those killed while carrying out attacks. The reform aims to align welfare assistance for prisoners and the families of slain attackers with general financial need, similar to other Palestinian social welfare programs.

The cancellation of these stipends is seen as a step toward bringing the PA into compliance with the US’s Taylor Force Act, which mandates the suspension of US aid to the PA if it continues granting stipends to individuals involved in terrorism. The reform was part of a long-standing effort and was quietly initiated during the final months of the Biden administration. It also sought to address concerns raised by international actors, particularly the United States and Israel, who have long criticized the PA's payments, calling it the "pay-to-slay" system.

The decision to cancel the stipends, however, is unlikely to satisfy Israeli leaders. Israel has maintained a firm stance against the PA due to its previous practice of paying allowances to individuals convicted of terrorism and their families. The Israeli government views this as an incentive for terror, and the Foreign Ministry quickly dismissed the decree, accusing the PA of continuing payments to terrorists through other channels.

Furthermore, Israel’s government has yet to indicate whether it will consider the reform enough to change its stance regarding financial transfers to the PA. Israel had previously withheld tax revenues from the PA over the stipends, citing them as a violation of Israeli law.

PA’s New Fund for Welfare Assistance

The PA's new decree shifts the administration of welfare funds to the Palestinian National Foundation for Economic Empowerment. The fund, led by PA Social Welfare Minister Ahmad Majdalani, will evaluate eligibility for welfare assistance based on financial need, with reviews conducted twice a year. This change is intended to provide more transparent and equitable support to families facing poverty, especially those impacted by the ongoing conflict and economic downturn in the West Bank.

The reform also seeks to help restore international aid programs that were suspended in recent years, including those related to the Gaza Strip. With high poverty rates in the West Bank, particularly after Israel ended permits for over 100,000 Palestinians to work in Israel, the PA’s financial support for affected families will continue. Despite the shift in policy, families of prisoners and those killed during attacks will still be eligible for financial aid, a necessary lifeline for many in the impoverished regions.

US Legal and Diplomatic Considerations

The move comes as the US Supreme Court prepares to rule on a case involving American victims who seek damages from the PA due to its payment program. The cancellation of stipends is viewed as a positive step in restoring the PA’s international standing, especially with the United States. However, as the PA seeks further recognition in international forums, it remains to be seen if this reform will bring lasting changes in its relationship with both the US and Israel.