With the inauguration of President Donald Trump, 2025 marks a pivotal moment for change, both in America and the Middle East. It’s past time to dismantle the system funneling donations from well-meaning Western charity-givers to terrorism, violating U.S. and Israeli law. At the core of this issue are the Palestinian Authority’s Martyrs’ Fund and Prisoners’ Fund. The Martyrs’ Fund provides payments to the families of terrorists, while the Prisoners’ Fund, established in 2004, offers stipends to Palestinians imprisoned in Israeli jails. These programs perpetuate violence, sustained by international funding.
The PA, often seen as a “partner for peace,” has become a clearinghouse for what is known as “pay-for-slay” payments. Under current PA law, convicted terrorists — including those released as part of the recent Israel-Hamas ceasefire — are entitled to lifelong compensation. This incentive system undermines peace and rewards violence. The international community, led by the Trump administration, must act swiftly to halt these payments.
Established in 1993 under the Oslo Accords, the PA was meant to pave the way for a Palestinian state. However, it has rejected multiple peace offers, prioritized violence, and funneled millions into funding terrorism. In 2016 alone, the PA allocated $315 million, 8% of its budget, to payments for terrorists and their families. These monthly stipends often exceed the average salary in the West Bank. PA President Mahmoud Abbas openly stated, “If we are left with one penny, we will spend it on the families of prisoners and martyrs.”
Terrorists released from prison are not only compensated but receive extensive benefits. Released prisoners who served between one and three years receive a bonus of $1,500, while those imprisoned for 30 years or more receive $25,000. Additionally, they enjoy waived health insurance, free university tuition, and guaranteed civil service employment, with promotions tied to the length of their sentences. Those serving the longest terms are granted ranks equivalent to a government minister or senior major general.
The murder of Taylor Force, a 28-year-old West Point graduate, tragically exemplifies the impact of these policies. In 2016, Force was fatally stabbed by a Palestinian terrorist during a stabbing spree in Tel Aviv. The terrorist’s family continues to receive a monthly stipend from the PA. In response, Congress passed the Taylor Force Act in 2018, halting American economic aid to the PA until it ceases these payments. Despite this, the Biden administration reportedly did little to press the PA to end its financial support for terrorists.
Israeli law has also taken measures against these practices. Since 2018, Israel has deducted the equivalent of the PA’s terrorism payments from the tax revenues it transfers to the PA. On Jan. 15, the Israeli Supreme Court ruled that victims of Palestinian terrorism could sue the PA for compensation. Despite these efforts, the PA’s allocations for terrorist stipends continue to grow.
Recent events have exacerbated the issue. Al-Hayat Al-Jadida, the PA’s official newspaper, announced 23,210 new “martyrs” and recognized 3,550 new prisoners following the Oct. 7, 2023, attacks, many of them Hamas members. All are now eligible for PA salaries. Additionally, the 734 terrorists released as part of the Jan. 26 prisoner exchange have received nearly $142 million in payments, with one individual, Muhammad Al-Tous, receiving $631,394.
The Israel-Hamas ceasefire agreement, which involved releasing hundreds of violent Palestinian prisoners in exchange for a few dozen Israeli hostages, has further incentivized terrorism. These released prisoners, many guilty of attacks such as bombings and stabbings, are now eligible for lifelong financial compensation from the PA. This arrangement perpetuates a cycle of violence, rewarding acts of terrorism with economic benefits and guaranteed employment.
To address this, the Trump administration must prioritize ending these payments. The PA’s survival relies on international donations, yet its leadership frames efforts to halt terror funding as “aggression against the Palestinian people.” Abbas defended the payments as a “social responsibility,” even as the Biden administration considered granting the PA authority over Gaza, a move that would have effectively rewarded an entity funding terrorism.
Before expanding the PA’s influence, the U.S. must lead the international community in demanding the end of “pay-for-slay” payments. Failure to do so will only perpetuate violence and undermine efforts for lasting peace in the region.
Sander Gerber is CEO of Hudson Bay Capital Management. He is a distinguished fellow at the Jewish Institute for National Security of America and a fellow at the Jewish Council for Public Affairs.
Bassem Eid is a Palestinian human rights activist. He lives in the West Bank
Originally Published in the Washington Examiner.