With the overthrow of Saddam's regime, the flow of an estimated $30 million to Palestinian families has ended. The last payment came a week before the start of the U.S. invasion of Iraq.

While the public relations effect of the payments overshadowed the minor contribution to the Palestinian economy, the loss of Iraqi support underlines the narrowing circle of outside backers for Palestinian militants.

"When an Arab regime that is known to support the Palestinian cause falls, it weakens the Palestinian national struggle," said Wassel Abu Yusef of the Palestine Liberation Front, whose leader — Achille Lauro hijacker Abu Abbas — was captured in Iraq last month.

"This support helped the Palestinian people and the martyrs' families to continue the struggle against the Israelis," he said.

With annual per capita income in the West Bank and Gaza Strip at less than $850, the Iraqi payouts were a windfall for the bereaved families.

Mr. Shkukani, a retired local employee of the United Nations, said the $25,000 has been exhausted since the money was divvied up among the nine surviving siblings, including university tuition for a sister living in Youngstown, Ohio.