US Supreme Court to Weigh Landmark Terrorism Case Targeting Palestinian Authority’s ‘Pay-for-Slay’ Program

Debbie Weiss

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PA President Mahmoud Abbas at the UN General Assembly in New York. Photo: Reuters/Caitlin Ochs

In a case that could redefine the legal landscape for victims of terrorism seeking justice, the US Supreme Court is set to hear arguments against the Palestinian Authority and the Palestine Liberation Organization (PLO) over their role in incentivizing violence against Americans abroad.

The high-profile brief — filed this week by a legal coalition and more than a dozen organizations in response to the 2018 murder of Israeli-American Ari Fuld by a Palestinian terrorist — calls on justices to hold Palestinian leadership accountable for its controversial “pay-for-slay” program.

The amicus brief, submitted on Tuesday by the International Legal Forum (ILF) and 16 other Jewish and pro-Israel organizations, argues that the PA and PLO have long been complicit in orchestrating and financially rewarding acts of terror.

“Since their founding, the PLO and the Palestinian Authority have been an instrumental element in inciting, funding, and rewarding terrorism, especially through the pay-for-slay program,” ILF CEO Arsen Ostrovsky told The Algemeiner. “They are not a powerless bystander but a leading driver of modern-day terrorism. Enough is enough.”

The so-called “pay-for-slay” scheme has been widely condemned by US lawmakers, with reports estimating that approximately 8 percent of the PA’s budget is allocated to paying stipends to convicted terrorists and their families. As outlined in the ILF’s legal filing, “the more deadly the attack and the longer the terrorist spends in prison, the greater the stipends they receive.”

The legal brief contends that the US Congress has clear constitutional authority to permit American victims of Palestinian terrorism to sue the PA and PLO in US courts, since these entities have maintained a presence on American soil and were previously warned that their activities could expose them to legal action. Palestinian leaders “had been on notice that their activities would subject them to jurisdiction, yet have continued to reward and sponsor terrorism regardless,” Ostrovsky said.

The lawsuit was initially filed under the US Anti-Terrorism Act by Fuld’s widow and other American victims of Palestinian terror, seeking damages from the PA and PLO. However, the case faced a major setback in 2023 when the Second Circuit Court of Appeals ruled that US federal courts lack jurisdiction over the Palestinian entities, citing concerns over the due process rights of foreign organizations.

Congress attempted to address this legal gap in 2019 with the passage of the Promoting Security and Justice for Victims of Terrorism Act (PSJVTA), which sought to ensure that the PA and PLO could be held accountable in American courts if they funded attacks against US citizens or conducted activities within the United States. The brief argues that the PA and PLO have done both, and therefore must face legal consequences.

“It is imperative to hold not only Hamas accountable, but the Palestinian leadership as well,” Ostrovsky said. “Acts of terror, such as the one that claimed the life of Ari Fuld, do not occur in a vacuum. They are the direct result of a pervasive Palestinian infrastructure that indoctrinates hate and incentivizes violence.”

The development coincides with an ongoing ceasefire and hostage release deal between Israel and Hamas, which included the release last month of Ari Fuld’s killer, Khalil Jabarin. Ari Fuld’s brother, Hillel Fuld, said the family’s “personal grievance and loss was currently amplified” by Jabarin’s release from prison.

Reflecting on the hostage deal that saw Jabarin walk free — financially secure by Palestinian standards due to the pay-for-slay stipends he received while in prison — Fuld acknowledged that the situation was “not black and white.”

“On the one hand this is a terrible, terrible deal from a strategic perspective, and there’s no sugarcoating the fact that letting go of thousands of monsters is just horrible,” he told The Algemeiner. “The flip side is that it’s the most beautiful thing there is to see those families reunited, and it’s a fundamental pillar of Judaism to free our prisoners, our people, and our soldiers need to know that we will do whatever it takes to bring them back if such a thing happens to them.”

Ostrovsky expressed his hope that the Supreme Court would hold Palestinian leaders accountable and prevent them from “rewarding and underwriting murderers of American nationals abroad, like Ari Fuld.”

The court’s decision to take up the case marks a pivotal moment in US counterterrorism law. If the justices rule in favor of the plaintiffs, it could set a precedent allowing American victims of international terrorism to pursue legal claims against foreign entities that support or enable such attacks. The brief was filed on behalf of ILF by the Holtzman Vogel law firm as well as the National Jewish Advocacy Center, with oral arguments expected later in the year.

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