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.

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 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.