Senior State Department official says US closely tracking requirements under existing law that bars direct aid to PA so long as it awards stipends based on time served

Money said to compensate family of Muhannad Halabi for housing costs after IDF destroyed their home following killing of Rabbi Nehemia Lavi and Aharon Banita in 2015

Analyst says move 'nearly suicidal' for PA that is heavily reliant on these funds amid drop in donor aid and economic crisis caused by coronavirus

PA president expresses frustration about recent Israeli decisions, including move to withhold tax funds from Ramallah over its payments to families of attackers

In return for Israel easing restrictions on Strip, Hamas will reportedly curb protests, rockets; Bennett to bring for approval further cuts to PA over terror stipends

Defense minister says directive to confiscate payments is part of efforts to ensure 'Jewish blood will no longer be financially lucrative'