While the Palestinian Authority does not deny that it pays salaries to terrorists and their families, it claims that the funds come from the Palestine Liberation Organization, not the PA’s budget. However, Yigal Carmon, president and founder of the Middle East Media Research Institute, told Congress in July that in order to mislead donor countries who were pressuring the PA to stop rewarding terrorism, the PA transferred the role of distribution of money in 2014 from a ministry in the PA to a commission in the PLO. He added that the PA is still the source of the funding, and that the official overseeing the payments remains the same. (Palestinian Media Watch has also reported that the money is still controlled by the same officials and comes from the PA’s budget, albeit indirectly.)

Source: UK Suspends $30 Million in Aid to Palestinian Authority Over Payment of Terrorist Salaries | The Tower – 10/7/2016