The Trump administration is accusing the Palestinian Authority of trying to mislead the international community by claiming it has ended its controversial “pay-for-slay” policy, despite an independent audit that found significant reforms had been implemented, The Times of Israel reports.

The dispute centers on a February 2025 decree signed by PA President Mahmoud Abbas replacing the previous system, which based payments to Palestinian security prisoners on the length of their sentences, with a welfare program tied to financial need. An audit conducted by Alvarez & Marsal concluded that the new program is largely separate from the previous prisoner payment system, while noting additional documentation is still needed to verify that the old payment mechanism has been permanently dismantled.

The State Department rejected the audit’s conclusions, arguing it reviewed only the PA’s new welfare agency and did not examine what it described as “clandestine bypass channels” allegedly used to continue funneling money to terrorists and their families through salaries, pensions, or cash payments. U.S. officials warned international donors not to be “duped” by what they called a deceptive reform effort.

Israeli officials echoed the administration’s position, arguing that any continued payments would likely be concealed through unofficial channels that a standard financial audit would not uncover. The issue remains significant because the Taylor Force Act bars certain U.S. assistance to the Palestinian Authority as long as payments tied to terrorist prisoners continue.

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