PA says external audit proves payments incentivizing attacks on Israelis have ended

The Palestinian Authority (PA) has declared that an external audit confirms that its newly reformed welfare program no longer provides incentives for individuals to carry out attacks against Israelis. This announcement comes after the PA commissioned an independent audit by the international consulting firm Alvarez & Marsal (A&M) to verify the implementation of reforms aimed at ending what critics had called a controversial system of payments to families of militants. The audit was intended to provide legitimacy to these changes, particularly in response to longstanding concerns raised by Israel and the United States about the PA’s previous practices. The PA initiated this reform in February 2025, following pressure from the international community, including demands from the U.S. and Israel. Under the new system, welfare benefits are distributed based solely on a household’s financial status, rather than the duration of a prisoner’s sentence or whether an individual was injured or killed during conflicts with Israel. This shift was designed to eliminate the perception—and allegations—that the PA had been financially rewarding acts of violence against Israelis. The audit conducted by A&M was meant to serve as proof that the new program is being implemented correctly. The PA hopes that the findings will satisfy the U.S., which has been reluctant to resume full aid to the PA due to the Taylor Force Act. That legislation, passed in 2017, prohibits U.S. assistance to the PA unless it ceases providing payments to prisoners based on the length of their incarceration. The most recent report from the U.S. State Department, issued in early 2025, indicated that such payments were still ongoing, relying on data from Israeli authorities and groups critical of the PA. To address these concerns, the PA has invited the U.S. to conduct its own audit of the welfare program. Officials in Ramallah believe that timing the audit close to the upcoming Israeli general election could help ease tensions between the two sides. The current Israeli government, led by Prime Minister Benjamin Netanyahu, has reportedly hindered efforts by the PA to improve relations with the U.S. ahead of the vote. While the PA has released statements confirming the audit’s conclusions, it has not made the full report publicly available. However, a source familiar with the audit noted that the PA’s interpretation of the findings aligns closely with the actual content. The results were initially shared by the Palestinian National Economic Empowerment Institution (PNEEI), the agency responsible for administering the new welfare program. The PNEEI’s statement emphasized that eligibility for benefits is determined using objective measures, such as the Proxy Means Test Formula (PMTF), which assesses a household’s economic and social needs based on specific criteria. The PNEEI highlighted that the audit found no evidence that the new program encourages or rewards violent actions against Israelis. Instead, it confirmed that the distribution of aid is strictly tied to poverty levels and geographic factors, ensuring that support reaches those most in need without regard to political or military affiliations. Despite the PA’s claims, skepticism remains among some observers. Critics argue that verifying the effectiveness of such programs is difficult without access to detailed documentation or independent verification beyond the PA’s own statements. Additionally, the absence of direct comments from A&M raises questions about the transparency of the audit process. The U.S. State Department has yet to officially respond to the PA’s announcement or the invitation for a second audit. As the situation unfolds, the PA continues to push for international recognition of its reforms. With the Israeli election approaching, the timing of the audit and the potential for further diplomatic engagement remain significant factors. Whether the U.S. will accept the findings and adjust its stance on aid to the PA remains uncertain, but the PA appears committed to proving that its welfare policies no longer pose a risk of incentivizing violence.