The payments, which Israel calls "martyr funds", have been criticized by Israel and the USA for rewarding those who exercise violence against Israel and Israelis.
During Donald Trump's first term as President of the USA, the country stopped payments to the PA, citing the payments to prisoners, and Israel has several times for the same reason frozen payments of Palestinian funds.
Palestinian sources to the news agency AP and Israeli media report that they have informed the American government about the decision and that President Mahmud Abbas hopes that the USA will again provide economic support to the PA.
The PA states that the families who are now affected can receive other support, based on their economic situation.