The U.S. State Department has formally confirmed that the Palestinian Authority (PA) provided payments to convicted terrorists freed by Israel as part of the October 2025 Gaza ceasefire agreement, according to a non-public report to Congress. The determination, compiled between August 2025 and January 2026, marks the first official U.S. acknowledgment that the PA has "provided payments to convicted terrorists released from Israeli prisons in October 2025 under President Trump's 20-point peace plan." This follows earlier findings that PA president Mahmoud Abbas continued funding militants despite public claims of ending the so-called "pay-to-slay" program in 2025.
Violations of Ceasefire Terms
The report confirms the PA redirected hundreds of millions of dollars to terrorists and their families through a newly established welfare authority, a shift from previous payment methods. This approach, first reported in February 2026, aimed to conceal transactions from Western governments. Notably, a portion of these funds reached militants released during the October ceasefire. The State Department's findings come six months after President Donald Trump's Gaza ceasefire took effect, which included Abbas's pledge to end payments to terrorists and pursue reforms.
The PA has since escalated its support for militants. Abbas's Fatah party announced in March 2026 that terrorists imprisoned for over 20 years would receive leadership roles, according to Palestinian Media Watch. Fatah Revolutionary Council member Tayseer Nasrallah stated these individuals would participate in the upcoming Eighth Fatah Conference, where PA government policy is set. This move signals a formal integration of militants into the Palestinian leadership structure.
U.S. Response and Consequences
The State Department report details additional breaches of U.S.-PA agreements, including incitement to violence via social media and educational materials promoting jihadist ideologies. The PA also bypassed direct negotiations with Israel by advocating for statehood recognition at the United Nations, contrary to ceasefire terms. Palestinian officials further pursued "lawfare" against Israel through war crimes cases at the International Criminal Court and International Court of Justice, leading the U.S. to revoke their visas ahead of the September 2025 U.N. General Assembly.
The U.S. has maintained a "blanket denial" of visas for Palestinian government officials, a policy set to continue for six months or until the next State Department review. The report also notes Palestinian efforts to undermine the Abraham Accords by pressuring countries against joining the normalization agreements. Despite officially disavowing the Arab League boycott of Israel, the PA continues to back the Boycott, Divestment, Sanctions (BDS) movement.
Sen. Ted Cruz (R., Texas) criticized the PA's actions, stating the report proves its unwillingness to pursue peace. "The Palestinian Authority has incited terrorism and evaded accountability for decades," he said. "President Trump has rightly condemned their behavior, but more must be done to hold them accountable." The findings raise questions about the viability of U.S.-backed peace initiatives amid persistent violations by the PA.