The fund (known as the Martyrs fund also called: pay-for-slay) is enshrined in law in Palestine and is around $300 million which is around 7% of the entire Palestinian Authority's (the government the us and the west recognize) $5 billion budget (which most comes from foreign doners) for the record medicare and medicade barely make 6% of the US federal budget and we have a population of 340 million while they have a population of 5 million- NYC has a population of 8 million and 7% of it's budget goes to funding the public pre-k, elementary/middle/high schools, public universities and colleges, special programs, teachers and admin salary etc for 1-2 million students. If you kill an Israelior end up in Israeli prison for attacking a citizen of Israel (jew or not) you end up with at least 4 times the minimum salary in the Palestinian Authority
The PA hands out over $300 million annually in stipends to terrorists and their families, a program that has been enshrined in Palestinian law, requiring 7% of the PA's budget to be allocated to these payments. Terrorists who murder Israelis receive higher salaries than Palestinian teachers and doctors. A terrorist serving a life sentence earns four times the average Palestinian salary and eight times the minimum wage. The more blood spilled, the greater the financial reward. the base pay for a single man if he goes to prison is $12,307 per person per year. That number only goes up if you die, or how many kids you have or if your married or how many dependents or some combination of it. So if you want to make money or support your family in the west bank it makes more financial sense to stab/attack/kill a random Israeli civilian and hope you don't get shot/killed, than it is to go to trade school or college. And this the Palestinian Authority, the so called moderate ones who the us and west WANT Israel to work with. Hamas (who governs the gaza strip) has their own fund too and they're more extreme than the PA. Seriously you could be just doing religious stuff in Jerusalem not supporting Israel at all and a random Palestinian can just walk up and attack/kill you and even if he goes to prison he's still leaving with enough cash to retire/move to europe with. In prison they are treated as heros and they know that if they kidnap Israelis they can pressure them to release 100 prisoners for one israeli. So not only do you get free money and fame but also you get a shorter sentence, all for killing/attempting to kill some random someone who's standing in Israeli land (not the settlements). And if you die not only do you get those 72 virgins but also your family is facially covered too. They promote this as a credible career path. Kids in palestine grow up wanting to be a murderer of civilians their society promotes it. There are only two times an Israeli Jew did a terror attack. The first one (the cave of the patriarchs massacre) resulted in the shooter being beaten to death by the crowd he was trying to kill and the israeli government did not support or endorce the shooter at all, and the society at large was horrified. The 2nd one was 1 adult convinced two minors to join him in the kidnapping and murder of some random Palestinian kid from the west bank (not an Israeli) as revenge for some idf soldiers getting kidnapped. The adult I know got a life in prison sentence, the kids I think got lesser sentences (because they were minors and I think one kid had developmental problems). And the Israeli government wanted to put the Palestinian kid's name on israelis national memorial of victims of terror attacks (it's like the us Vietnam memorial where it has all the names written). The family refused that and wanted the adults home torn down but the Israelis said no because they don't need to make an incentive to not do terror (but some in Israel were saying to do it anyway). I do know the heads of different parts of the Israeli government went into Palestine to visit the kids morners tent to pay their respects to the family of the victim. I know the adult and his two accoplieses were arrested by the shin bet (think israel's fbi) because Shin bet has a whole division focused on Jewish extremists and stopping them. But in short Israel destroys the terrorists home as a way to punish them for their crimes because the Palestinian Authority won't. And any money the Palestinian Authority gives the terrorists won't go to anything but rebuilding the home. the whole home destruction thing is very controversial within Israel and has always been since it was implemented.