The Palestinian Authority (PA) operates one of the most insidious state-sponsored terror financing networks in the world. Through its Martyrs’ Fund and Prisoners’ Fund, the PA institutionalizes pay-for-slay, a system that financially rewards terrorists and their families for attacks against civilians. This is not just a controversial policy—it is terrorism funding in its most blatant form. Despite international condemnation, these programs continue to incentivize violence, undermining the possibility of peace in the Middle East.

How “Pay-for-Slay” Works

The Martyrs’ Fund provides financial compensation to the families of terrorists killed while carrying out attacks, while the Prisoners’ Fund, established in 2004, ensures stipends for Palestinians imprisoned in Israel for terrorism-related offenses. These payments are not merely symbolic; they are structured to provide lifelong financial security for convicted terrorists and their families.

Under Palestinian Authority law, terrorists who serve time in Israeli prisons receive structured monthly payments, which increase based on the severity of their crimes. For example:

• Terrorists serving between one and three years in prison receive a $1,500 bonus upon release.
• Those serving 30 years or more receive $25,000.
• Released terrorists are granted free healthcare, university tuition waivers, and government jobs, with salaries and promotions tied to the length of their sentences.

This system not only legitimizes terrorism but actively encourages it, ensuring that even those convicted of the most heinous crimes receive lifelong benefits. PA President Mahmoud Abbas has repeatedly defended the program, once declaring, “If we are left with one penny, we will spend it on the families of prisoners and martyrs.”

The Global Cost of Terrorism Funding

The PA’s pay-for-slay scheme is funded largely through foreign aid, particularly from Western nations. In 2016 alone, the Palestinian Authority allocated $315 million—8% of its total budget—toward these terror payments. The international community must come to terms with a disturbing reality: money sent to the PA for humanitarian or governance purposes is ultimately used to fund terrorism.

Despite efforts to curb this practice, many international donors continue to provide financial assistance to the PA, either directly or through intermediaries. The United States attempted to address this issue through the Taylor Force Act, passed in 2018, which sought to halt U.S. economic aid to the PA until the terror payments stopped. However, under the Biden administration, the U.S. resumed aid to Palestinian institutions, with little oversight on whether these funds continue to support terrorism.

Meanwhile, European countries remain key contributors to PA funding, despite mounting evidence that the money is funneled into terrorist salaries. The European Union, the United Nations, and various NGOs must be held accountable for their complicity in maintaining this system.

The Role of the Red Cross in Facilitating Payments

One of the most overlooked yet significant actors in the Palestinian Authority’s terror financing network is the International Committee of the Red Cross (ICRC). While the Red Cross is widely recognized for its humanitarian work, it has played an indirect but crucial role in facilitating the PA’s payments to terrorists. The ICRC has allowed its facilities and financial infrastructure to be used for the delivery of these stipends, making it complicit in the continuation of pay-for-slay.

Red Cross offices in the West Bank and Gaza have been reported to assist in the coordination of these payments, often under the guise of humanitarian aid distribution. This assistance has enabled convicted terrorists and their families to receive funds more efficiently, circumventing restrictions imposed by foreign governments.

Despite numerous reports detailing the Red Cross’s involvement, international pressure to hold the organization accountable has been minimal. Governments and oversight bodies must demand that the ICRC cease all assistance in the distribution of terrorism-linked funds or face significant financial and diplomatic repercussions.

Real-World Consequences: The Case of Taylor Force

The consequences of pay-for-slay are not theoretical. One of the most tragic examples is the murder of Taylor Force, a 28-year-old West Point graduate who was stabbed to death in a terrorist attack in Tel Aviv in 2016. The attacker’s family continues to receive monthly payments from the PA, reinforcing the financial incentive behind terrorism.

Congress responded with the Taylor Force Act, but legislative measures alone have failed to dismantle the system. As recently as October 7, 2023, when Hamas launched one of its deadliest attacks against Israel, PA-run media reported that 23,210 new “martyrs” and 3,550 new prisoners became eligible for terror stipends. Following the January 26, 2025, prisoner exchange, 734 released terrorists were awarded a combined $142 million in compensation.

One of the most glaring examples is Muhammad Al-Tous, a convicted terrorist who has personally received $631,394 from the Palestinian Authority. These figures reveal the staggering scale of PA-backed terrorism financing and the urgent need for international intervention.

Ending “Pay-for-Slay”: The Path Forward

To dismantle the PA’s terror financing network, world leaders must take decisive action. The following steps are critical:

1. Cut off international aid: The U.S., EU, and other donor countries must impose strict conditions on financial assistance to the PA, ensuring that no funds are used for terrorism financing.
2. Enforce the Taylor Force Act: The U.S. must strengthen enforcement mechanisms, preventing any loopholes that allow aid to flow indirectly to the PA.
3. Increase transparency and accountability: The international community must demand full financial transparency from the PA and independent audits to track where foreign aid is spent.
4. Hold PA leadership accountable: The PA’s continued financing of terrorism should lead to targeted sanctions against its officials, similar to measures taken against state sponsors of terrorism.
5. Public exposure and advocacy: Governments, media, and human rights organizations must publicly expose the PA’s terror payments, ensuring that taxpayers worldwide are aware of how their money is being misused.
6. Investigate and hold the Red Cross accountable: The ICRC must be subject to rigorous investigation regarding its role in facilitating terror stipends and be forced to sever all ties with the PA’s payment network.

The time for half-measures is over. The pay-for-slay system is nothing more than terrorism funding, and the world must recognize it as such.

Related Links

• The Taylor Force Act and U.S. Policy
• European Parliament Debate on Palestinian Aid
• Palestinian Authority Budget Reports
• Analysis of PA Terror Financing
• Recent U.S. Sanctions on Terror Financing
• Israeli Ministry of Foreign Affairs Statement on PA Payments

Other FinCrime Central News Stories about Terrorism Financing

• USAID Fraud Scandal: How Millions Were Diverted to Terrorism
• EU Tightens Sanctions on Hamas and PIJ to Combat Terrorism Financing
• UAE Expands Terrorist List with 19 New Entities and Individuals

Source: ASEAN NOW