The Palestinian Authority’s policy of financially supporting Palestinians who land in Israeli prisons, as well as their families, is a perennial concern for Israeli and American policymakers and a source of disagreement with their counterparts in Ramallah.
Critics of this policy, particularly in the U.S. and Israel, often point to these prisoner payments as an unambiguous case of terror incitement—a government openly rewarding people for committing acts of violence against Israelis. The PA, on the other hand, views the system as a legitimate means of supporting people it considers to be prisoners of war or political prisoners and their families in the struggle against a military occupation.
https://israelpolicyforum.org/2021/04/02/palestinian-prisoner-and-martyr-payments-explained/