For Palestinians, terrorism quite literally pays. While the international community continues to debate so-called obstacles to peace between Israelis and Palestinians – and even considers the Palestinian Authority (PA) as a potential governing body for Gaza, despite its deep unpopularity – one of the most glaring and dangerous barriers to the PA's legitimacy is its systematic financial incentivization of terrorism.
This policy, commonly known as "Pay for Slay" or "the Martyr's Fund," rewards those who commit acts of violence against Israelis, ensuring that terrorism remains a profitable path rather than a deterrent to peace.
The PA hands out over $300 million annually in stipends to terrorists and their families, a program that has been enshrined in Palestinian law, requiring 7% of the PA's budget to be allocated to these payments. Terrorists who murder Israelis receive higher salaries than Palestinian teachers and doctors. A terrorist serving a life sentence earns four times the average Palestinian salary and eight times the minimum wage. The more blood spilled, the greater the financial reward.
Headlines broke this week over Palestinian President Mahmoud Abbas issuing a decree revoking the Martyrs Fund payments, leaving many shocked and surprised by the move. But for those who suspected it was too good to be true, they were likely right—because Abbas' so-called restructuring of these payments is nothing more than political theater.
The decree, which allegedly transfers these payments to a new "Palestinian National Foundation for Economic Empowerment," does not dismantle the terror stipend system; it simply rebrands it under a different name. Abbas still appoints the leadership of this new entity, and there is no transparency to ensure that payments will now be based solely on economic need rather than rewarding violence. If anything, this latest maneuver is a desperate attempt to placate international donors while continuing the same heinous practice through alternative means.
The Israeli Foreign Ministry dismissed this announcement as a "fraudulent exercise," and American lawmakers from both sides of the aisle remain highly skeptical. Senator Tom Cotton (R-AR) pointedly stated, "It would be naive to think that after years of facilitating terrorism against Israelis and Americans, the Palestinian Authority would suddenly have a change of heart." Congressman Mike Lawler (R-NY) added, "I'll believe it when I see it."
The PA has a long history of defying international pressure and refusing to end Pay for Slay. The United States attempted to curb the policy with the 2018 Taylor Force Act, cutting US aid to the PA unless these payments ceased. Yet, Abbas openly defied the law, increasing the terror stipends instead. Jenin's Mayor Akram Rajoub even doubled down in a recent interview, stating unequivocally, "The Palestinian Authority will not stop funding the families of our martyrs even if we are down to the last penny."
Despite this, some Western countries continue to funnel money into the PA's coffers. Just this week, the European Union announced an increased funding package of €296 million to the PA – funds that will inevitably support terrorism. Meanwhile, the PA spends more on terror stipends than on healthcare for its own citizens, further proving that its priorities do not lie with improving Palestinian lives but with sustaining a culture of violence and martyrdom.
The ramifications of Pay for Slay extend far beyond the financial aspect. This system has deeply embedded terrorism into Palestinian society. In schools, Palestinian children are indoctrinated with martyrdom culture, learning that attacking Israelis is a noble path rewarded both in the afterlife and by the PA's bank account. The celebrations that erupt in Gaza and the West Bank after terror attacks are not spontaneous – they are the result of decades of systematic glorification of violence backed by financial incentives.
The international community cannot continue turning a blind eye. So long as the PA actively rewards terrorism, peace will remain an illusion. Real peace requires the dismantling of this blood-soaked economic model. Words and decrees from Abbas mean nothing without verifiable, transparent action. The US and its allies must hold the PA accountable and ensure that Pay for Slay is truly abolished – not just rebranded.
Until then, the PA's empty gestures should not be mistaken for progress.
