The law allows families of terror victims to sue anyone who "provides a salary" for acts of terrorism. Through its pay-for-slay program, the PA provides stipends to terrorists and their families, to the tune of more than $300 million a year. 

Compensation can be paid from tax funds that Israel withholds on behalf of the PA. Israel already freezes the transfer of funds equivalent to the amount the PA pays out each year through its pay-for-slay program.