But the PA has now confirmed reports that it will end the practice as part of the Gaza ceasefire deal, with its president Mahmoud Abbas revoking the law that put the scheme in place.
One of the proposed governance solutions for the Strip has been the removal of Hamas to be replaced by a heavily reformed version of the PA.
Under a revised iteration of the policy, payments will still be made to prisoners, but the amount will be based on the individual’s financial circumstances rather than being pinned to the length of their sentence.
This is seemingly designed to remove the financial incentive for terrorists to commit more serious crimes in order to secure a larger payout.
Sources told the Times of Israel that the reform had been largely decided during negotiations with the Biden administration, but that it was held back to be used as a gesture of good will in discussions with the incoming Trump team.
However, this was reportedly before President Trump’s comments that the US would look to “take over” the Gaza Strip and relocate its population before redeveloping it into the “riviera of the Middle East”.
His remarks prompted fierce backlash within the international community, including from the PA and Hamas, and the impact they have had on future peace negotiations remains to be seen.
It comes after Mike Huckabee, Trump’s nominee as US ambassador to Isrel, told a Fox News interview that Hamas “cannot exist” under a prospective peace deal and that the new president will bring change “of biblical proportions” to the region.