Prime Minister Benjamin Netanyahu on Sunday praised the U.S. government for passing the Taylor Force Act, which suspends some financial aid to the Palestinian Authority over the stipends the PA pays the families of Palestinian terrorists killed or jailed in actions against Israel.
In 2017, the PA spent 1.23 billion shekels ($358 million) on payments to terrorists and their families, 7% of its total budget for the year.
The Taylor Force Act, named after an American who was murdered in Israel by a Palestinian terrorist in 2016, was folded into a $1.3 trillion spending bill signed by U.S. President Donald Trump.
On Sunday, Netanyahu called the law a "powerful signal by the U.S. that changes the rules" by cutting "hundreds of millions of dollars for the Palestinian Authority that they invest in encouraging terrorism."
Israeli Ambassador to the United Nations Danny Danon welcomed the legislation.
"The passage of the Taylor Force Act is an important step towards finally ending the despicable practice of pay to slay and ensuring accountability in the Palestinian Authority. All countries must demand that the PA invest in a future for Palestinians, not pay terrorists' salaries," he tweeted.
The Palestinians say the families are victims of violence.
Palestinian Authority President Mahmoud Abbas condemned the U.S. move and vowed to continue paying families of "martyrs and prisoners."
His spokesman, Nabil Abu Rudeineh, also slammed the law, saying it does not "allow for the creation of an atmosphere conducive to peace."