U.S. Finds Palestinian Authority Paid Over $200 Million to Terrorists Despite Ending ‘Pay-to-Slay’ Claim

Key Facts

Published: January 28, 2026 Location: Washington D.C. Source: Washington Free Beacon

• The U.S. State Department found the Palestinian Authority paid more than $200 million to terrorists and their families in 2025, despite claims the “pay-to-slay” program had been ended
• Investigators determined the PA shifted payments into a rebranded welfare system, continuing terror compensation in violation of the Taylor Force Act
• The findings further undermine the PA’s standing with the Trump administration as it seeks any role in postwar Gaza governance

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

WASHINGTON D.C. (Worthy News) – The U.S. State Department has determined that the Palestinian Authority paid more than $200 million to terrorists and their families in 2025, despite claims by PA President Mahmoud Abbas that the controversial “pay-to-slay” program had been ended.

According to a nonpublic notice provided to Congress and obtained by the Washington Free Beacon, the PA shifted the payments to a newly branded welfare mechanism rather than eliminating them. Israeli intelligence assessed that $144 million was funneled to terrorists and their families in 2024, with at least $214 million committed through 2025. The State Department found that payments continued from March through August 2025 under the guise of social assistance.

“The PA changed the mechanism, not the policy,” the State Department wrote, concluding that compensation for terrorism continued through a different government-controlled entity, the Palestinian National Foundation for Economic Empowerment.

The findings come as the Trump administration advances phase two of its Gaza peace framework, which bars the PA from participating in postwar governance unless it undergoes sweeping reforms, including a complete end to terror payments. While the PA has no formal role in Gaza’s future administration, Israeli and U.S. officials have raised concerns about behind-the-scenes influence through figures with past PA ties.

Israel has consistently argued that the Palestinian Authority is unfit to govern Gaza, citing its failure to dismantle terrorist networks, its lack of public legitimacy, and its long-standing policy of financially rewarding terrorism. Israeli officials view the continuation of “pay-to-slay” — even under rebranded welfare programs — as evidence that the PA incentivizes violence rather than deters it. From Israel’s perspective, allowing the PA to govern Gaza under these conditions would risk perpetuating extremism, undermining security, and destabilizing Israel’s southern border rather than establishing durable peace.

The State Department also found that the PA used post offices, social media platforms, and encrypted messaging services to notify recipients that funds were available, signaling that terror compensation remained active. U.S. officials concluded that the policy violates the Taylor Force Act, which conditions American aid on ending payments to terrorists and their families.

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