Palestinian Authority President Mahmoud Abbas said on Sunday that he will continue to pay stipends to convicted terrorists and their families in defiance of a bill passed by Israel last week that would offset payments to the Palestinian Authority as a deterrence from what it calls "terror payments".
Palestinians view those killed or detained by the Israeli government as heroes and political prisoners and that the welfare program helps to financially sustain them and their families. Israel says this is an incentive to commit more severe attacks.
The team of officials, led by presidential advisor/son-in-law Jared Kushner, travelled to the region last month but found their proposals unlikely to be implemented because the Palestinian Authority refuses to meet with them, still infuriated by the Trump administration's decisions to recognize Jerusalem as the capital of Israel and move its embassy there.
On July 2 the Israeli parliament voted 120-87 to withhold approximately US$330 million in annual tax revenues - the amount that would typically go toward this stipend during the 2018 fiscal year.
After the law comes into force, payments made by the PA to Palestinian security prisoners and their families would be deducted from the tax revenue given to Ramallah.
Abbas, who chaired the meeting on Sunday, held at his office in Ramallah, said "we won't let the deal of the century pass", Xinhua news agency reported. He said the Palestinian authorities "will continue to pay for them".
Trump announced previous year that he will stop America's contribution to the UN Relief and Works Agency (UNRWA) and the PA to put pressure on the authority to stop paying salaries to Palestinian prisoners inside Israeli jails and prisoners released by Israel, as well as to the families of Palestinians killed by Israel.
Some 35,000 political prisoners, martyrs and their families receive this stipend.