Most of the time, Israeli policy was to treat the Palestinian Authority as a burden and Hamas as an asset. Far-right MK Bezalel Smotrich, now the finance minister in the hardline government and leader of the Religious Zionism party, said so himself in 2015.
According to various reports, Netanyahu made a similar point at a Likud faction meeting in early 2019, when he was quoted as saying that those who oppose a Palestinian state should support the transfer of funds to Gaza, because maintaining the separation between the Palestinian Authority in the West Bank and Hamas in Gaza would prevent the establishment of a Palestinian state.
By not financing Hamas?