Israeli Court Freezes Palestinian Authority Funds over Pay-for-Slay Program

Wednesday, 26 March 2025 | The Jerusalem District Court on Tuesday issued an unprecedented order to temporarily freeze 50 million shekels (US $13.7 million) in funds allocated to the Palestinian Authority, according to Hebrew media reports.

The lawsuit was filed by Rabbi Leo Dee, whose wife and two daughters were killed in a terrorist attack in April 2023. Dee’s legal action challenges the PA’s “pay-for-slay” program, which provides financial support to prisoners and the families of attackers. The suit argues that these payments incentivize terrorism and calls for financial accountability.

The case seeks compensation for terror victims and aims to establish a legal precedent that could lead to more PA funds being frozen over ties to terrorist attacks. Supporters of the lawsuit also see it as a way to disrupt PA financial channels that are accused of supporting terrorism.

Following the ruling, Rabbi Dee urged other terror victims to take similar legal action, arguing that economic pressure on the PA could help deter future attacks.

Legal analysts highlight the far-reaching implications of the ruling, which could lead to greater scrutiny of PA financial transactions.

The PA has yet to issue an official response, but Ramallah has previously condemned such financial freezes as a violation of economic agreements.

Under the 1994 Paris Protocol, Israel collects tax revenues on behalf of the PA and transfers them monthly. However, Israeli authorities have the legal authority to withhold or freeze these funds in cases involving security concerns or legal claims.