The World Keeps Rewarding The Palestinian Authority – So Why Change?

Mahmoud Abbas stood before the United Nations last week–virtually–and delivered an astonishing message to the world.

The Palestinian Authority’s reform job is essentially finished.

“We have completed the national reform program,” Abbas declared, claiming his government had strengthened transparency, accountability, financial management, the rule of law and the fight against corruption.

He said the Palestinian welfare system had been transformed. Education was being reformed according to international standards. Democratic renewal was underway. The Palestinian leadership rejected terrorism, extremism, antisemitism and hatred.

There was just one problem.

Nine days earlier, the United States government had reached almost the opposite conclusion.

The State Department reported that the Palestinian Authority and Palestine Liberation Organization had “once again failed to live up to their commitments,” specifically accusing them of continuing payments to terrorists and glorifying terrorists through public statements and school textbooks. Washington responded by extending visa sanctions against PA and PLO officials.

So which Palestinian Authority are we talking about?

The transformed institution Abbas described at the UN?

Or the institution the United States says continues practices the international community has demanded it abandon?

Increasingly, that question doesn’t seem to matter–because the money keeps coming anyway.

Another Crisis, Another Check

Canada announced another C$100 million in assistance for Palestinians during the UN General Assembly meetings while the European Union has proposed a €1.6 billion program through 2027. That includes €620 million in direct financial assistance to the Palestinian Authority, which the European Commission says is partially linked to reform commitments. 

But what actually happens when the Palestinian Authority doesn’t reform?

Apparently, another opportunity to reform.

Pay-For-Slay Gets A New Name

Consider perhaps the most notorious issue.

Abbas abolished the old prisoner-payment system and announced a new social welfare arrangement supposedly based upon financial need rather than a prisoner’s offense or sentence.

Not according to the U.S. government.

An April State Department report to Congress concluded that despite changing the mechanism, the PA continued providing payments and benefits to terrorists and their families. According to the report, approximately $156 million was paid during 2025.

Its conclusion was devastatingly simple: the PA continued a system of compensation supporting terrorism through “new mechanisms and under a different name.”

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