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Palestinian Authority Secretly Paid Terrorists Over $200 Million After Claiming Program Ended

The Palestinian Authority (PA) never stopped funding terrorism—it simply changed the name on the check. Despite public assurances to the Biden administration and the international community that its notorious “pay-to-slay” program had been dismantled, the U.S. State Department has now formally determined that the PA paid more than $200 million to terrorists and their families…

The Palestinian Authority (PA) never stopped funding terrorism—it simply changed the name on the check.

Despite public assurances to the Biden administration and the international community that its notorious “pay-to-slay” program had been dismantled, the U.S. State Department has now formally determined that the PA paid more than $200 million to terrorists and their families in 2025 alone. The finding was disclosed in a nonpublic notice to Congress obtained by the Washington Free Beacon.

The revelation confirms long-held Israeli intelligence assessments and exposes a calculated deception by PA leadership at a critical moment, as the Ramallah-based government seeks influence over postwar Gaza.

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A Rebranded Terror Finance Scheme

According to the State Department’s determination, the PA did not end the payments—it rerouted them. The original compensation system was shifted to a new government-controlled body, the Palestinian National Foundation for Economic Empowerment (PNEEI), under the guise of social welfare reform.

“The PA continued the payments to Palestinian terrorists and their families during the reporting period,” the State Department concluded, noting that the change was merely cosmetic. Israeli intelligence assessed that $144 million was paid in 2024, with at least $214 million committed through 2025.

From March through August 2025, the State Department confirmed that the payments continued under the “reformed” system.

Abbas Said One Thing—Then Admitted the Truth

PA President Mahmoud Abbas drew global headlines in February 2025 when he claimed to abolish the pay-to-slay program, promising that welfare assistance would be based solely on financial need.

But weeks later, Abbas told the Fatah Revolutionary Council something very different:
“Even if we only have one cent left, it will be for the prisoners and martyrs.”

That statement now appears to have been the honest one.

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How the PA Hid the Payments

The Trump administration compiled evidence showing that the PA used post offices, social media platforms, and encrypted messaging apps like Telegram to notify recipients that funds were available under the new system. The State Department concluded this demonstrated clear intent to continue compensating terrorists while avoiding donor scrutiny.

Despite the rebranding, the payment structure reportedly remained identical—same recipients, same amounts, same incentives tied to acts of violence.

Still Violating U.S. Law

The findings place the PA in direct violation of the Taylor Force Act, which bars U.S. aid to the PA unless it fully ends terrorist compensation.

“A shift to a potential welfare system without ending specific payments and benefits for Palestinian terrorists and their families is not compliant,” the State Department wrote, adding that the PA is “providing a system of compensation in support of terrorism through a new mechanism under a different name.”

The PA is also still enforcing statutes such as Law No. 14, which mandates monthly payments to imprisoned terrorists equivalent to their pre-arrest salaries.

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Fresh Payments Still Flowing

Israeli watchdog group Palestinian Media Watch reported this week that the PA issued a new round of terror stipends to recipients living in Jordan. Bank records and firsthand accounts showed the transferred sums were identical to previous payments—further proof that nothing meaningful has changed.

Gaza and the Political Stakes

These disclosures severely undermine the PA’s credibility as it maneuvers for influence in Gaza following the war with Hamas. While the PA has no formal role under the Trump administration’s Gaza peace framework, the head of Gaza’s new administrative committee, Ali Shaath, has deep PA ties—raising concerns that Abbas’s government could exert indirect control.

Under Phase Two of the Trump peace plan, the PA is barred from participating in postwar Gaza governance until it undergoes sweeping reforms, including a verified end to pay-to-slay.

The State Department’s findings suggest that condition has not been met.

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Conclusion

The Palestinian Authority did not abandon pay-to-slay—it perfected it. By disguising terror payments as welfare, Abbas’s government attempted to deceive donors, evade U.S. law, and continue incentivizing violence against Israel.

The evidence is now on the record. The question is whether the international community will finally hold the PA accountable—or once again look the other way.


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