Palestinian president scraps prisoner payment system amid US criticism

RAMALLAH - Palestinian President Mahmoud Abbas said he was scrapping stipends paid to families of those jailed or killed in the war with Israel, as his administration seeks to build ties with US President Donald Trump and vie for a role in post-war Gaza.

The payouts were long denounced by Israel, which says the system incentivises terrorism and rewards the most violent acts by linking payments to Palestinians to the length of time spent in jail. The Palestinian Authority (PA) says the payments are needed for families whose main breadwinner has been killed or imprisoned.

The PA, which is internationally recognised and controls parts of the West Bank, has said it’s ready to govern Gaza after the war and help rebuild the war-ravaged territory. Hamas wrested control of Gaza from the PA in 2007, effectively creating two Palestinian governing entities. 

Mr Abbas’ office said in a statement he issued a decree cancelling “articles in the laws and regulations related to the system of financial allocations to the families of prisoners, martyrs and the wounded”.

Beneficiaries would continue to be tended to, the statement said, along with other Palestinians in need, “according to the standards of inclusiveness and fairness”.

The language suggests payments will no longer be linked to jail time, but rather take the form of social welfare, based on financial need. 

During Mr Trump’s first term in the White House, the US cut off aid to the PA citing stipends paid to families of those convicted of terrorism. It was later restored under former President Joe Biden.

Hamas, is designated a terrorist group by the US and many other countries. It unleashed the war after thousands of its operatives crossed into Israel on Oct 7, 2023, killing 1,200 people and abducting 250.

Since then, more than 47,000 Gazans have been killed, according to the Hamas-run health ministry. BLOOMBERG