RAMALLAH, West Bank (Reuters) - President Mahmoud Abbas faced criticism from allies and foes alike on Tuesday over a decree overhauling payments to families of Palestinians killed or jailed by Israel, a move to satisfy a U.S. demand that will likely deepen his unpopularity.

The United States and Israel have long condemned the payment of stipends to families of Palestinian prisoners involved in attacks on Israel.

Palestinian President Mahmoud Abbas has issued a decree overturning a system of payments to the families of Palestinians imprisoned or killed by Israeli forces that has been a longstanding source of friction with the United States.

Palestinian president Mahmoud Abbas has issued a decree on Monday revoking the system of payments to families of Palestinian prisoners in Israeli jails or to families of Palestinians who were killed or wounded during attacks against Israelis.

The Palestinian Authority will no longer pay stipends to the families of convicted terrorists and other prisoners, in a gesture to President Donald Trump. The longstanding program determined the size of the stipend based on the length of a prisoner’s sentence,

President Mahmoud Abbas faces criticism after issuing a decree to overhaul payments to families of Palestinians killed or jailed by Israel. The move aims to appease a longstanding U.S. demand, but risks further unpopularity.

The payouts were long denounced by Israel, which says the system incentivises terrorism. Read more at straitstimes.com.

The Trump administration welcomed on Wednesday Palestinian President Mahmoud Abbas' decision to revoke the system of payments to families of Palestinian prisoners in Israeli jails or to families of Palestinians who were killed or wounded during attacks against Israelis.

State Department spokesperson tells ToI decree signed by Abbas 'appears to be positive step,' Washington will monitor its implementation; EU envoy voices similar cautious optimism The post ‘Big win for Trump’: US welcomes PA prisoner payment reform,