Palestinian Authority Adjusts Payments for Prisoners Amid U.S. Pressure

In response to longstanding U.S. and Israeli pressure, the Palestinian Authority has announced a pivotal change in its payment practices concerning families of Palestinians jailed or killed by Israel, marking an effort to secure foreign aid and stabilize its economy.

The Palestinian authority in the West Bank has historically provided substantial stipends to families of prisoners, including those linked to violent acts against Israel. This practice has been met with strong condemnation from the United States and Israel, which have continuously urged the Palestinian Authority to discontinue it. On February 11, 2025, the Authority declared its intention to revamp its payment structure, signaling a strategic move to gain favor with President Trump and attract essential foreign assistance.

Palestinian officials, who requested anonymity due to the sensitive nature of the subject, disclosed that this decision aims to comply with U.S. laws that restrict direct economic aid to the Palestinian Authority while such payments are in place. Over recent years, these restrictions have exacerbated the economic challenges faced by the Palestinian Authority, struggling to meet its financial obligations and employee salaries.

In a decree issued by Mahmoud Abbas, the Palestinian Authority President, the existing stipend distribution system will be entirely overhauled. The newly formed Palestinian National Economic Empowerment Institution announced that families of prisoners would now receive funds strictly based on financial necessity and social welfare criteria, devoid of any consideration of political leanings or prior actions. This significant shift aims to alleviate economic distress while navigating the complex landscape of regional and international relations.