Palestinian Authority Adjusts Stipend Policy Amid U.S. Pressure

In a move reflecting geopolitical calculations, the Palestinian Authority has decided to modify its longstanding stipend payments to families of prisoners, largely influenced by pressure from both the United States and Israel.

The Palestinian administration, struggling financially, has provided stifling stipends amounting to hundreds of millions of dollars over years for families of Palestinians imprisoned or killed, sparking widespread condemnation from the U.S. and Israel. This past Monday, the Authority revealed its intent to discontinue this controversial practice, a decision seen as a strategic gesture towards President Trump’s administration, aiming at revitalizing foreign aid inflows.

Officials with knowledge of the internal discussions, who wish to remain anonymous, noted that this policy shift is crucial for aligning with American regulations that impose restrictions on direct economic aid to the Palestinian Authority as long as such payments were ongoing. The previous ban has exacerbated the economic struggles of the cash-strapped Authority, resulting in delayed salaries for government employees.

In a decree issued late Monday, Palestinian Authority President Mahmoud Abbas initiated a reform of the financial assistance structure. Moving forward, the stipends would be redirected towards families based purely on financial need and social welfare parameters, completely independent of political affiliations or past actions. The Palestinian National Economic Empowerment Institution has issued a statement endorsing this reform, marking a new chapter in the Authority's approach to social support amid ongoing economic challenges.