Palestinian president Mahmoud Abbas has issued a decree on Monday revoking the system of payments to families of Palestinian prisoners in Israeli jails or to families of Palestinians who were killed or wounded during attacks against Israelis.

Palestinian President Mahmoud Abbas has issued a decree overturning a system of payments to the families of Palestinians imprisoned or killed by Israeli forces that has been a longstanding source of friction with the United States.

The United States and Israel have long condemned the payment of stipends to families of Palestinian prisoners involved in attacks on Israel.

The Palestinian Authority has paid millions of dollars to families of assailants who have attacked Israelis in recent years, drawing scrutiny from the United States and from victims of the attacks.

President Mahmoud Abbas faced criticism from allies and foes alike on Tuesday over a decree overhauling payments to families of Palestinians killed or jailed by Israel, a move to satisfy a U.S. demand that will likely deepen his unpopularity.

Palestinian President Mahmoud Abbas has ordered for special payments to relatives of Palestinian prisoners to be suspended, in a reversal of his previous position. The Palestinian WAFA news agency reported on Monday that Abbas had repealed the relevant law by decree.

The Trump administration welcomed on Wednesday Palestinian President Mahmoud Abbas' decision to revoke the system of payments to families of Palestinian prisoners in Israeli jails or to families of Palestinians who were killed or wounded during attacks against Israelis.

State Department spokesperson tells ToI decree signed by Abbas 'appears to be positive step,' Washington will monitor its implementation; EU envoy voices similar cautious optimism The post ‘Big win for Trump’: US welcomes PA prisoner payment reform,