An April 2026 U.S. State Department report to Congress under the Taylor Force Act stated that the Palestinian Authority continued providing payments and benefits to terrorists and their families between September 2025 and February 2026, including through new mechanisms that Washington said still violated the law. The report cited Israeli figures claiming the PA spent about $156 million on such payments in 2025, referenced statements by PA officials reaffirming the policy, and accused the PA of continuing to glorify terrorism in official rhetoric and school materials.
The following is the full substance of the report.
Section 1004(e) of the Consolidated Appropriations Act, 2018 (Title X, Div. S, – Taylor Force Act P.L. 115-141)
Consistent with section 1004(a) and 1006 of the Consolidated Appropriations Act (Div. S, Title X – Taylor Force Act P.L. 115-141) (TFA), Section 1004(e)(1) provides that, if the Secretary is unable to make the certification in section 1004(a), the Secretary is required to submit a report to Congress describing (1) the reasons why he was unable to certify that the Palestinian Authority (PA), the Palestine Liberation Organization (PLO), and any successor or affiliated organizations met the requirements; (2) the definition of “acts of terrorism” used to make this assessment, and; (3) the total amount of funds to be withheld. Section 1004(e)(1) covers September 2025 through February 2026.
Reasons Why the Secretary was Unable to Certify
The Secretary was unable to certify because the PA has not met the requirements described in section 1004(a). Despite changing the mechanisms, the PA continued payments and benefits to Palestinian terrorists and their families. According to information publicly released by Israeli Foreign Minister Gideon Sa’ar during the reporting period, during calendar year 2025 the PA provided $156 million (NIS 488.5 million) in payments and benefits to Palestinian terrorists and their families. Of this total, the PA provided $126 million (NIS 395.9 million) to Palestinian terrorists and released Palestinian terrorists from Israeli jails and $30 million (NIS 92.6 million) to the families of Palestinian terrorists who died committing their acts of terrorism. Israel reported the PA continued to make payments and benefits to Palestinian terrorists and their family payments through multiple mechanisms including the new social welfare agency called the Palestinian National Foundation for Economic Empowerment (PNEEI). As previously reported to Congress during prior reporting periods, a shift to a welfare system like the PNEEI that fails to end specific payments and benefits for Palestinian terrorists and their families is not compliant with the provisions of the Taylor Force Act. The PA continues to provide a system of compensation in support of terrorism through new mechanisms and under a different name.
Continued Compensation to Palestinian Terrorists and Their Families
Open-source reports showed the PA continued compensating terrorists and their families despite claims to the contrary. For example, one year after PA President Abbas claimed to revoke the decrees to end the policy, PA Finance Minister Estephan Salameh reaffirmed in February 2026 the PA’s commitment would continue and admitted it has not stopped. Salameh stated, “With effort and great, almost impossible difficulty, we continue to provide this 60 percent rate of [PA public employee] salaries. We have not abandoned any Palestinian resident, whether they are prisoners or families of Martyrs and wounded. This is a clear fundamental issue.” Salameh delivered these remarks even after the previous PA Finance Minister Omar Bitar was fired in November 2025 after the PA admitted to continuing the compensation to Palestinian terrorists and their families under the prior system.
The Department assesses that Palestinian leadership continues to use official announcements, including through social media, to notify released Palestinian terrorists of the steps they should take to receive continued compensation. On February 11, Israel-based research institute Palestinian Media Watch (PMW) reported that on January 28 the PLO Commission of Detainees and Ex-Detainees Affairs had published a list of 52 released Palestinian prisoners who needed to take administrative steps (e.g., update bank details, provide proof or life, or appoint agents) in order to continue or begin receiving monthly salaries from the PA/PLO. This list included five individuals released as part of the deals between Israel and Hamas that released Palestinians in exchange for the hostages.
These included Ahmad Dahidi (orchestrator of a January 12, 2003, shooting that murdered Israeli citizen Eli Biton and injured five others), Ahmad Abu Awad and Ahmad Al-Shibani (both implicated in constructing the bomb for the May 19, 2003, Afula mall suicide bombing that killed Israeli civilians Avraham Zrihen and Hassan Tawatheh and Ukrainian immigrant Kiril Shremko and injured 70 others), and Saed Zaid (implicated in a June 26, 2003, shooting that murdered Israeli Amit Mintin). Each terrorist had accumulated salaries of at least $354,000 (NIS 1,105,900–1,137,200) owed to them by the PA at the time of their release. According to PMW, these individuals are set to receive from the PA $2,541 (NIS 8,000) monthly going forward.
In addition, the report listed Ashraf Abu Al-Rub. Abu Al-Rub recruited and dispatched a suicide bomber for a terrorist operation in 2002. He was originally released in the 2011 Gilad Shalit prisoner-hostage exchange deal, before returning to terrorist activities. He was rearrested in 2014. According to PLO documents obtained by PMW, upon release, Abu Al-Rub was owed at least $120,975 (NIS 380,400) and is slated to receive $1,908 (NIS 6,000) monthly from the PA. In total, the PA owed these five individuals approximately $1,555,000 in payments by the time of their February 2025 release, in addition to one-time release grants totaling $52,500. According to PMW, the PA plans to provide them a combined $12,100 (NIS 38,000) per month.
In November 2025, the EU Commission publicly acknowledged its assessment that payments and benefits were continuing, stating, “We understand that a recent payment has been made to the families of prisoners, based on a previous scheme. We profoundly regret this decision, as this seems to go against prior announcements.” The EU Commission requested clarity from the PA, and a subsequent Euronews investigation alleged that applicants for PNEEI are also receiving supplementary payments in addition to payments issued to welfare recipients. Due to a lack of budget transparency, these payments are not reported in official channels and despite PA officials’ public statements to the contrary. The PNEEI shared their new criteria for welfare stipends with EU and Arab donors in September 2025. Although the document stated 3,000 individuals would no longer qualify for assistance, the PA acknowledged 2,000 would continue to receive stipends.
In December 2025, the Israeli foreign ministry issued a statement which referenced October footage showing individuals waiting in line at the PA post office for payments. This method of payment retrieval is the standard method for receipt under the PA’s system of compensation in support of terrorism. PMW also documented similar post-office distributions in October 2025.
According to Embassy Jerusalem, these payments and benefits to Palestinian terrorists and their families have continued despite some protests among released Palestinian terrorists. On January 6, 40 former Palestinian prisoners gathered at the presidential compound in Bethlehem to protest the PA’s claimed reforms. A separate, smaller protest took place on December 24, 2025, in Bethlehem, where PA Vice President Hussein al-Sheikh was attending a Christmas Eve service. Neither of the protests were reported by Palestinian media.
Continuing to Glorify Terrorism
PA officials continue to fail to publicly condemn acts of violence against U.S. and Israeli citizens in violation of the Taylor Force Act. In a December 15, 2025, interview on Egyptian Al Qahera News TVPA President Abbas’ Advisor on Religious Affairs Mahmoud Al-Habbash (who also serves as Chairman of the Supreme Council for Shariah Justice) blamed Israel for the December 14, 2025, terror attack at Bondi Beach in Australia. While characterizing the terrorist attack as a “crime,” Al-Habbash stated, “The analysis of what happened, or of similar events that are liable to occur in the future, points the finger of blame at one party that bears responsibility for dragging the entire world into this dangerous cycle, the cycle of revenge and the cycle of hatred on a racial and religious basis, and that is the Israeli occupation.”
The NGO IMPACT-se, which analyzes schoolbooks, released a new report in November 2025 which found that PA school textbooks for grades 1-12 continue to glorify jihad and incitement to violence. According to the report, as of November 2025, the PA Ministry of Education’s 12th grade textbooks continued to list “passages glorifying jihad and martyrdom, promising divine and earthly rewards for those who die in battle, and lessons warning of ‘the danger of the People of the Book, especially the Jews.’”
Following the October 2025 prisoner-hostage exchange deal which preceded implementation of the Gaza Ceasefire, the PA welcomed and glorified the Palestinian terrorists released. A report by PMW documented that Abbas personally sent two senior PLO officials to Egypt to embrace and honor the released terrorists. PLO Commission of Prisoner Affairs Director Raed Abu Al Humus (who also serves on the board of the PNEEI) and Palestinian National Council Chairman Rawi Fattouh publicly conveyed Abbas’ blessings, stating, “Blessings upon you, O brave heroes! I convey to you the blessings of President Mahmoud Abbas and the blessings of the Fatah leadership.”
Definition of Acts of Terrorism
In considering what constitutes “acts of terrorism,” the Department considered cases of violent, criminal acts committed by individuals and/or groups in furtherance of an ideological influence.
Total Amount of Funds to be Withheld
No Economic Support Funds (ESF) were withheld under section 1004 of the TFA because no ESF were provided during the reporting period that were subject to the requirement. All U.S. assistance is provided consistent with applicable U.S. law.
Source: “Report to Congress on Palestinian Payments for Acts of Terrorism and Limitation on Assistance to the West Bank and Gaza,” U.S. Department of State, (April 29, 2026).