For one, there's no proof that he's ever actually paid anyone for that offer.
Secondly, while paying the family's of the terrorists off can be sort of tacit approval of terrorism it's far from actively 'financing' it. The US does the exact same thing in dozens of countries all across the globe.
And, paying the familes for people killed in the Jenin refugee camp is a sign of outreach that US itself can learn from.
The Muslims around the world, and many non-Muslims as well, Israels "retaliation" is often times nothing more than terrorism itself. State-supported terrorism at that. And with military hardware that the US largely provides.
A suicide bomber bombs a bus, Israel "retaliates" by shooting tank shells into groups of schoolchildren or demolishing the homes of perfectly innocent people. It's not "collateral damage" it's simply revenge.
In my mind, and in many other people's minds, that's State-supported terrorism, and paying $25,000 to the families of suicide bombers is no different than you and my tax dollars paying $25,000 for that tank shell given to Israel so they can kill 15 schoolchildren for no reason other than revenge.
