How the Palestinian Authority Rewards Terrorism

How does the Palestinian Authority Reward Terrorism?

For years, the Palestinian Authority has rewarded terrorism with significant financial incentives.

How has the U.S. responded to these payments? And will the PA ever change?

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What is ‘Pay for Slay’?

The Palestinian Authority (PA) has historically operated a program that allocates funds to individuals convicted of terrorism and to their families. These payments, often termed ‘martyr’ stipends, have been criticized for incentivizing terrorism against Israel. The PA administers the ”Pay for Slay” program by providing monthly stipends to convicted terrorists in Israeli prisons. They also pay the families of those killed while carrying out attacks against Israelis.

How the Payments Work

In 2024, the PA allocated approximately 1.1 billion shekels (more than $300 million) annually for these payments. The more severe the attack and the longer the Israeli prison sentence, the higher the stipend awarded to prisoners and their families.

A terrorist serving 20 years in prison could receive over $3,000 per month. This sum is higher than the average salary of a Palestinian civil servant. Family members of deceased attackers (“martyrs”) also receive lifetime pensions.

These payments are distributed through the  Palestinian Liberation Organization (PLO) and are enshrined in Palestinian law, ensuring consistent funding.

How The International Community Helps Pay

Payments for the Pay For Slay program are drawn from the Palestinian Authority’s general budget. The PA has historically received foreign aid from countries such as the U.S., the EU, and Arab nations.

To avoid international scrutiny, the PA often channels payments through the Palestinian Liberation Organization instead of directly through government ministries.

The Taylor Force Act

The Trump administration signed the bill after the death of Taylor Force, an American murdered by a Palestinian terrorist in Tel Aviv on March 8, 2016.

On a trip with a Vanderbilt University MBA study group, Taylor was stabbed in a terrorist attack and died of his injuries shortly after. When Taylor’s family and friends discovered that the PA would pay a monetary reward to the family of the terrorist, they lobbied Congress to adopt legislation that would sanction the PA. This legislation became the Taylor Force Act.

Recent Reforms Don’t Actually Change Pay for Slay

With Trump’s reelection in 2024, the U.S. renewed pressure on the Palestinian Authority. In response, PA President Mahmoud Abbas issued a decree in February 2025 to overhaul the payment system.

However, the “changes” announced by Abbas do not fundamentally alter the Pay for Slay method. Some analysts question the effectiveness of the reforms. The PA appears to be reallocating funds to perpetrators of terrorism through other means, such as under “social welfare.”

Is the Two-State Solution Dead?

After October 7th and the Israel-Hamas War, statistics show that both Israelis and Palestinians no longer believe in the possibility of a two-state solution.

For decades, the Palestinian Authority has been the best partner for peace among Palestinians.

While policies regarding terror financing go through legislative and diplomatic channels, the future of the Palestinian territories has reached a new level of ambiguity.

Read More From The Philos Project

SOURCES:

Jerusalem Center for Security and Foreign Affairs: Incentivizing Terrorism — Palestinian Authority Allocations to Terrorists and their Families

Israel Policy Forum: Palestinian Prisoner and Martyr Payments Explained

Congress.gov: H.R.1164 – Taylor Force Act

Politico: US says Palestinians are close to changing ‘pay for slay’ program

Jerusalem Post: Trump administration cuts all funding for Palestinian security forces

Wall Street Journal: Palestinians Vow to End Controversial Prisoner Payment Program

Reuters: Abbas risks Palestinian backlash over overhaul of prisoner payments