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Israeli Prime Minister Benjamin Netanyahu is praising the U.S. government for passing a law that suspends some financial aid to the Palestinians over the stipends paid to families of Palestinians killed or jailed in fighting with Israel.

The Taylor Force Act, named after an American killed in Israel by a Palestinian in 2016, was folded into a $1.3 trillion spending bill signed by President Donald Trump.

On Sunday, Netanyahu called the law a "powerful signal by the U.S. that changes the rules" by cutting "hundreds of millions of dollars for the Palestinian Authority that they invest in encouraging terrorism."

The Palestinians say the families are victims of violence. Palestinian official Nabil Abu Rdeneh condemned the law, saying it doesn't "allow for the creation of an atmosphere conducive to peace."