$50 Million in Palestinian Authority Funds Seized for Families of Terror Victims

Israeli Finance Minister Bezalel Smotrich announced Sunday that he has signed an order to seize 177 million shekels ($48 million) from Palestinian Authority (P.A.) tax revenues, redirecting the funds to the families of terror victims.

“Money intended for terrorists will not reach the Palestinian Authority not as long as I am minister of finance,” Smotrich stated. “This is not just our right it is our moral and national duty. We will continue to deduct, seize, and transfer the funds to those who truly deserve them the families of terror victims.”

This marks the second consecutive month that Israel has withheld funds from the P.A. over its continued “pay-for-slay” policy, in which stipends are paid to terrorists and their families. Under the Oslo Accords, Israel collects between 600 million and 700 million shekels ($165–$192 million) in tax and tariff revenue each month on behalf of the P.A.

In 2018, the Knesset passed legislation mandating that Israel deduct the equivalent of what the P.A. pays to terrorists annually an amount that Israeli legal findings last year estimated at nearly 1 billion shekels ($270 million). The funds are instead allocated to compensate Israeli victims of terrorism.

Despite international criticism of the policy, P.A. leader Mahmoud Abbas has repeatedly vowed to continue payments to what he calls the “Martyrs’ Fund.” On February 21, Abbas reiterated: “Even if we have [only] one penny left, it is for the prisoners and the martyrs. We are proud of the sacrifices made by the martyrs, prisoners and wounded.”

Smotrich’s latest order is expected to deepen the financial crisis in Ramallah, but Israeli officials argue that redirecting the funds sends a clear message that terrorism will not be incentivized.

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