The goal isn't to get the victim's families money. The goal is to 'out' people who might oppose the idea. If you don't support the cash handout you'll be called a racist right-winger who supports the killer. After being segregated and isolated in this manner, your trip to the rice paddies will be that much shorter.
It would be interesting to know who made this decision and what the rational was. Then compare that to the legal criteria for expending such money. Also, what is the history of such payments broken out by various categories. I suspect this is a much abused, politically oriented, slush/hush fund.