The Knesset's Foreign Affairs and Defense Committee on Sunday morning approved a bill proposed by MK Avichay Buaron (Likud), which stipulates that funds paid by the Palestinian Authority to terrorists or their families will be considered proof of endorsement of terrorist acts and will be deducted from the tax revenues that Israel transfers to the Authority.

The new law stipulates that payments made in memory of terrorists or to their families will be regarded as an action constituting "endorsement" of terrorist acts, thereby obligating the Palestinian Authority to compensate the State of Israel for damages caused by acts of terror.

Under the law, a monthly amount equivalent to 1/12 of Israel’s annual expenditure on compensating victims of hostile actions—both through property taxes and National Insurance—will be deducted from the Palestinian Authority's funds.

Buaron welcomed the approval of his proposal, stating, "Today, we are making history. For decades, Israeli citizens have paid dearly from their own pockets for the damages of terror, while the Palestinian Authority encourages and funds terrorism. This law is intended to put an end to that—those who encourage terror will pay the price, both legally and financially."

The chairman of the Foreign Affairs and Defense Committee, MK Yuli Edelstein, declared during the discussion, "The very idea of a political entity paying according to a 'terror price list' turns it into a terror entity. If the Palestinian Authority is padding the pockets of terrorists, we will ensure that its own pockets are emptied. This is another important step in our fight against Palestinian terror."

The Lavi organization, which took part in drafting the bill, stated, "The Palestinian Authority incentivizes harm to Jews, and it’s time for the State of Israel to demand compensation for the severe damages to life and property. This is a necessary and important step toward justice and political accountability."