Important Takeaways:

• Palestinian president Mahmoud Abbas has issued a decree on Monday revoking the system of payments to families of Palestinian prisoners in Israeli jails or to families of Palestinians who were killed or wounded during attacks against Israelis.
• The system — referred to as “pay for slay” by the first Trump administration and the Israeli government — was a major point of friction between the U.S. and the Palestinian Authority.
• The U.S. and Israel have argued for years that the system incentivized attacks on Israelis, and repeatedly demanded that the Palestinian Authority revoke it.
• But the Israeli Foreign Ministry issued a statement Monday denying that the payments would actually end: “This is a new fraudulent trick by the Palestinian Authority, which intends to continue making payments to terrorists and their families through other payment channels.”
• Palestinian officials told Axios they hope Abbas’ decision will improve relations with the Trump administration and with Congress and lead to the resumption of U.S. financial aid to the Palestinian Authority.
• According to a copy of the decree, all families that benefited from the previous system are subject to “the same standards applied without discrimination to all families benefiting from protection and social welfare programs” in the Palestinian Authority.

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