Is it permissible to cut off financial aid from two female relatives (the sister's daughter and her mother) who have been proven to spend the money on unlawful matters, and instead give it to those who are more deserving of the money?

Charity given to needy relatives is better than charity given to non-relatives, because it is both charity and the maintenance of kinship ties. This is unless the situation necessitates favoring a distant needy person due to the severity of their need. As for a relative or a distant person who spends money on sins, it is not permissible to give to them, as it involves aiding them in sin. However, if they are in need, they should be given what fulfills their need, such as food, drink, clothing, and the like.