Israeli Defense Minister Israel Katz took another step against the Palestinian Authority (PA), ordering the seizure of funds it pays to Palestinian prisoners held in Israel or those holding Israeli citizenship.
Israel’s Defense Ministry said the sanctions, imposed by Katz, are part of an economic crackdown by the security establishment against what it called “terrorist organizations.”
“The terror funds ordered to be seized by the defense minister were paid by the PA to terrorists serving prison sentences in Israel and to released prisoners,” according to a statement by the ministry.
Israel’s Maariv daily reported that the funds seized by Katz were paid by the PA to prisoners serving sentences in Israeli jails, released detainees, and their families.
The decision applies to “all residents of Jerusalem and Israeli citizens (Arab Israelis),” according to the Israeli Defense Ministry.
Katz’s move comes despite a decree last month by Palestinian President Mahmoud Abbas canceling legal provisions related to financial stipends for prisoners, martyrs, and the wounded.
The decree also transferred the digital database and financial allocations for the payments from the PA to a non-governmental organization.
Abbas issued the order after years of resisting US and Israeli pressure to halt PA payments to militants and detainees.
Israel began deducting funds from the PA’s tax revenues in 2018 to offset these payments, which Israeli officials call “pay-for-slay,” referring to stipends given to the families of prisoners and those killed in conflict.
The issue remains a source of ongoing tension.
In a bid to ease tensions, the PA years ago integrated released prisoners into government ministries, agencies, and security forces, placing many on early retirement. However, the move failed to satisfy Israel.
When US President Donald Trump took office in 2017, Abbas sought to resolve the crisis his own way, issuing a decree that sparked widespread controversy and domestic backlash.
The PA provides monthly stipends starting at 2,000 Israeli shekels ($550) for released prisoners, with payments increasing based on the length of their incarceration.
Current detainees receive at least 4,000 shekels ($1,100), with payments reaching 8,000 or 12,000 shekels for those who have served more than 20 or 30 years—though such cases are rare.
Last week, Israel seized $90 million from the PA’s tax revenues, known as “clearance funds,” redirecting the money to Israeli families of individuals killed in Palestinian attacks.
The latest Israeli measures follow Abbas’ decree and are part of Israel’s ongoing policy of deducting PA funds over the prisoner payment issue.
