Yes, but this is apparently being done openly by so-called "charities" in Saudi Arabia and Qatar, and the governments there seem to be doing nothing to stop them. That means that these charities are terrorist organizations (since they're supporting terrorism financially), and that means that the governments of these countries are harboring terrorist organizations. U.S. policy says that harboring terrorists will be treated in the same way as supporting terrorism itself. (By the way, this example illustrates why the exemption we've given to Arafat is bad policy.)
The Saudi government - or charities that are explicitly state sponsored - have repeatedly committed funds to the al Aqusa infitada and expressly to "martyrs."
It is all quite clearly documented on the Saudi's US Embassy web site at http://www.saudiembassy.net/press_release/press_release00.htm. I've posted the details and cites here on FR within the past week.
The Saudis explicitly promote the Palestinean cause and payments to the "martyrs."
FINANCE MINISTER SPEAKS OUT ON AID TO PALESTINIANS
March 20, 2001
Dr. Al-Assaf said that the emergency Arab Summit in Cairo in October 2000 accepted a proposal made by Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz concerning the establishment of a fund for the intifada. This fund has resources of $200 million, with the Kingdom's share standing at $50 million, and targets the families of victims of the intifada, specifically to educate the sons of martyrs and rehabilitate the injured. Dr. Al-Assaf added that the Crown Prince's second proposal, to establish a fund for Al-Aqsa, with resources of $800 million in which the Kingdom's share is $200 million, is dedicated to finance projects that would protect the Arab and Islamic identity of Al-Quds [Jerusalem].
Donations are still coming in to the committee, chaired by Interior Minister Prince Nayef bin Abdulaziz, that was set up to coordinate the fundraising. This committee, Dr. Al-Assaf said, has pledged a sum of SR 20,000 [$5,333] to each family that has suffered from martyrdom. A total of SR 124 million [$33.07 million] has been transferred for this purpose, and to provide for the injured.