WASHINGTON (Reuters) - The United States on Tuesday said it would withhold about half the initial aid it planned to give a U.N. agency that serves the Palestinians, two weeks after President Donald Trump questioned the value of such funding.

Boxes containing aid from the U.N. Relief and Works Agency (UNRWA) are seen ahead of their transfer to the Gaza Strip, inside the Kerem Shalom border crossing terminal between Israel and Gaza Strip January 16, 2018. REUTERS/Amir Cohen

In announcing that it would provide $60 million to the U.N. Relief and Welfare Agency (UNRWA) while withholding a further $65 million for now, the U.S. State Department said the aid group needed to make unspecified reforms.

Palestine Liberation Organization official Wasel Abu Youssef immediately criticized the move, casting it as a deliberate U.S. effort to deny the Palestinians their rights and linking it to Trump’s widely criticized Dec. 6 decision to recognize Jerusalem as Israel’s capital.

United Nations Secretary-General Antonio Guterres said he was unaware of any cut in aid but he was “very concerned” about the possibility because it “is an important factor of stability.”

UNRWA Commissioner-General Pierre Krähenbühl said in a statement that the reduced U.S. contribution “threatens one of the most successful and innovative human development endeavors in the Middle East.”

The decision to keep back some money is likely to compound the difficulty of reviving Israeli-Palestinian peace talks and to further undermine Arabs’ faith that the United States can act as an impartial arbitrator.

The last talks collapsed in 2014, partly because of Israel’s opposition to an attempted unity pact between the Fatah and Hamas Palestinian factions and to Israeli settlement building on occupied land that Palestinians seek for a state, among other factors.

“UNRWA has proven time and again to be an agency that misuses the humanitarian aid of the international community and instead supports anti-Israel propaganda, perpetuates the plight of Palestinian refugees and encourages hate,” said Danny Danon, Israel’s ambassador to the United Nations.

Even if Washington provided the additional $65 million, the $125 million total would be well below the $355 million that a U.S. official said it gave UNRWA in the 2017 fiscal year ended Sept. 30.

While saying the decision would sustain schools and health services, State Department spokeswoman Heather Nauert echoed Trump in calling on other nations to provide more money because he believes the United States pays more than its share.

The State Department wrote a letter notifying UNRWA of the decision, spokeswoman Nauert said. She said that while UNRWA reforms were a condition of releasing more money, the aid decision was “not aimed at punishing” anyone.

In a Twitter post on Jan. 2, Trump said that Washington gives the Palestinians “HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect.” Trump added that “with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?”

While U.S. officials did not link the decision to Trump’s tweet, they made a point often advanced by him, saying the United States had been UNRWA’s single largest donor for decades.

Trump’s aides initially debated whether to cut off all UNRWA aid, an unidentified U.S. official said, but hose opposed argued that could further destabilize the region.</s>The United States has announced its withholding $65 million in aid to Palestinian refugees but is insistent the move is not aimed at punishing Palestinians.

Washington officially announced Tuesday that it is freezing the funds “for future consideration.” The money was set to be allocated to the United Nations Relief and Works Agency (UNRWA) which works with Palestinian refugees.

"This is not aimed at punishing anyone,” State Department spokeswoman Heather Nauert told a media briefing.

It was initially reported ten days ago that Washington would withhold $125 million from the UN-affiliated body, but official word only arrived Tuesday. The funds were supposed to be paid at the start of the year.

The decision to suspend the aid comes two weeks after President Donald Trump threatened to cut funding. In a tweet on January 2, Trump said the US gets no “appreciation or respect” from Palestine despite donating hundreds of millions of dollars a year.

“They don’t even want to negotiate a long overdue peace treaty with Israel... With the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?” Trump said.

The tweets came after Palestinian President Mahmoud Abbas rejected Trump’s move to recognize Jerusalem as the capital of Israel. Abbas added that the US can no longer be considered an honest broker in the Israeli-Palestinian peace negotiations.

A US official, who spoke to Reuters on condition of anonymity, did not link the fund freeze to the president’s tweets, instead demanding that other countries do more to help Palestine.

“It is time other countries, some of them quite wealthy, step in and do their part to advance regional security and stability,” the official said.</s>WASHINGTON (Reuters) - The United States will give a U.N. agency $60 million in aid for Palestinians refugees but withhold a further $65 million for now, the State Department said on Tuesday, as the Trump administration carried out a threat it made two weeks ago to cut funding.

While saying the decision would sustain schools and health services, State Department spokeswoman Heather Nauert echoed President Donald Trump in calling on other nations to provide more funds because he believes the United States pays more than its share.

The decision to keep back some money is likely to compound the difficulty of reviving Israeli-Palestinian peace talks and to further undermine Arabs' faith that the United States can act as an impartial arbitrator, particularly following Trump's Dec. 6 announcement reversing decades of U.S. policy and recognizing Jerusalem as Israel's capital.

A Palestinian official quickly criticized Washington's decision to withhold some of the money and United Nations Secretary-General Antonio Guterres said he was unaware of any cut in aid but he was "very concerned" about the possibility.

The State Department notified the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA) of the decision in a letter, Nauert said at a daily briefing. She said the Trump administration was conditioning the release of the additional funds on whether the organization makes unspecified reforms.

She insisted, however, the U.S. decision was "not aimed at punishing" anyone.

A U.S. official, who spoke on condition of anonymity, said UNRWA must be fundamentally reevaluated "in the way it operates and the way it is funded."

"Without the funds we are providing today, UNRWA operations were at risk of running out of funds and closing down. The funds provided by the United States will prevent that from happening for the immediate future," the official said, saying the additional "$65 million will be held for future consideration."

In a Twitter post on Jan. 2, Trump said that Washington gives the Palestinians "HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect.

"They don't even want to negotiate a long overdue peace treaty with Israel ... with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?" Trump added in his tweet.

While U.S. officials did not link the U.S. decision to Trump's tweet, they made a point often advanced by the president by saying the United States had been UNRWA’s single largest donor for decades and demanded other nations do more.

"The United States government and the Trump administration believes there should be more burden sharing going around," spokeswoman Nauert said.

Trump’s aides initially debated whether to cut off all UNRWA aid after the tweet, a second U.S. official said. But those opposed to the idea argued that it could further destabilize the region, the official said.

"UNRWA has proven time and again to be an agency that misuses the humanitarian aid of the international community and instead supports anti-Israel propaganda, perpetuates the plight of Palestinian refugees and encourages hate," Danny Danon, Israel's ambassador to the United Nations, said.

Palestine Liberation Organization official Wasel Abu Youssef told Reuters: "This decision confirms the U.S administration is continuing in wiping out the rights of the Palestinian people. First was declaring Jerusalem as the capital of Israel and today the refugee issue."

Historically, U.S. administrations had said the status of Jerusalem must be decided in Israeli-Palestinian peace talks. The city is holy to three major monotheistic faiths.

At the United Nations, Guterres told reporters that the services provided by UNRWA were "of extreme importance, not only for the well-being of these populations ... but also in my opinion and an opinion that is shared by most international observers, including some Israeli ones, it is an important factor of stability."

"So if UNRWA will not be in a position to provide the vital services and the emergency forms of support that UNRWA has been providing this will create a very, very serious problem and we will do everything we can to avoid this situation," he said.</s>WASHINGTON (Reuters) - The United States will give a U.N. agency $60 million in aid for Palestinians but withhold a further $65 million for now, a U.S. official said on Tuesday as the Trump administration appeared to carry out a threat it made two weeks ago to cut funding.

While saying the decision would sustain schools and health services, the U.S. official echoed U.S. President Donald Trump in calling on other nations to provide more funds because he believes the United States pays more than its share.

The decision to keep back some money is likely to compound the difficulty of reviving Israeli-Palestinian peace talks and to further undermine Arabs’ faith that the United States can act as an impartial arbitrator, particularly following Trump’s Dec. 6 announcement reversing decades of U.S. policy and recognize Jerusalem as Israel’s capital.

A Palestinian official quickly criticized Washington’s decision to keep back some of the money and United Nations Secretary-General Antonio Guterres said he was unaware of any change on aid but he was “very concerned” about the possibility of a cut in funding.

The U.S. official, who spoke on condition of anonymity, said the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA) that will receive the money needed to be fundamentally reevaluated “in the way it operates and the way it is funded.”

“Without the funds we are providing today, UNRWA operations were at risk of running out of funds and closing down. The funds provided by the United States will prevent that from happening for the immediate future,” the official said, saying the additional “$65 million will be held for future consideration.”

In a Twitter post on Jan. 2, Trump said that Washington gives the Palestinians ”HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect.

“They don’t even want to negotiate a long overdue peace treaty with Israel ... with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?” Trump added in his tweet.

While the U.S. official did not link the U.S. decision to Trump’s tweet, he made a point often advanced by the president by saying the United States had been UNRWA’s single largest donor for decades and demanded other nations do more.

“It is time other countries, some of them quite wealthy, step in and do their part to advance regional security and stability,” the official said.

Trump’s aides initially debated whether to cut off all UNRWA aid after the tweet, a second U.S. official said. But those opposed to the idea argued that it could further destabilize the region, the official said.

“This decision confirms the U.S administration is continuing in wiping out the rights of the Palestinian people,” Palestine Liberation Organization official Wasel Abu Youssef told Reuters.

“First was declaring Jerusalem as the capital of Israel and today the refugee issue,” he said.

Historically, U.S. administrations had said the status of Jerusalem must be decided in Israeli-Palestinian peace talks. The city is holy to three major monotheistic faiths.

At the United Nations, Guterres told reporters that the services provided by UNRWA were “of extreme importance, not only for the wellbeing of these populations ... but also in my opinion and an opinion that is shared by most international observers, including some Israeli ones, it is an important factor of stability.”

“So if UNRWA will not be in a position to provide the vital services and the emergency forms of support that UNRWA has been providing this will create a very, very serious problem and we will do everything we can to avoid this situation,” he said.</s>The United States held back $65 million that had been destined for the United Nations relief agency for Palestinians on Tuesday, two weeks after President Donald Trump threatened future payments.

State Department officials insisted the decision was not taken to pressure Palestinian leaders, but because the US wants other countries to help pay for and reform UNRWA.

But the call came after a behind-the-scenes tussle between hawks who want to cut all aid to Palestinians and officials concerned about the humanitarian and diplomatic fallout.

The State Department said $60 million of what had been a planned $125 million package would go through to keep the agency running, but the rest will be withheld for now.

"This is not aimed at punishing anyone," spokeswoman Heather Nauert told reporters.

"The United States government, and the Trump administration, believe that there should be more so-called burden-sharing to go around," she said.

"We would like other countries, in fact other countries that criticize the United States for what they believe to be our position vis-a-vis the Palestinians... to step forward."

The head of the UN Relief and Works Agency for Palestinian Refugees (UNRWA), Pierre Krahenbuhl, expressed alarm and immediately called on other UN members to contribute.

He said the $60 million would keep schools and hospitals open for now, but noted that it was dramatically lower than the $350 million Washington paid over the course of 2017.

"Funding UNRWA or any humanitarian agency is the discretion of any sovereign member state of the United Nations," he said, in a statement.

"At the same time, given the long, trusted, and historic relationship between the United States and UNRWA, this reduced contribution threatens one of the most successful and innovative human development endeavors in the Middle East."

The State Department's position raised skepticism in the light of a tweet sent by Trump on January 2, at the time when the $125 million contribution had been due to be paid.

"We pay the Palestinians HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect," Trump wrote.

"They don't even want to negotiate a long overdue peace treaty with Israel," he protested, adding: "Why should we make any of these massive future payments to them?"

Following Trump's outburst, it was reported that his ambassador to the UN Nikki Haley had been pushing for a complete end to US aid to UNRWA.

But voluntary payments from the US are the biggest single source of support for the 68-year-old body, and other US officials opposed an immediate and total suspension.

Officials said the compromise would allow UNRWA schools and clinics in the Israeli-occupied West Bank, in Gaza and in neighboring Arab countries to remain open for now.

"There is a need to undertake a fundamental re-examination of UNRWA, both in the way it operates and the way it is funded," one official said on condition of anonymity.

But, even as US officials said the decision was not aimed at the Palestinians but intended to provoke UN reform, Israel welcomed it as a victory for their arguments.

Israel's UN envoy Danny Danon said the agency misuses aid and "supports anti-Israel propaganda, perpetuates the plight of Palestinian refugees and encourages hate."

He accused UNRWA's leaders of allowing "terror tunnels" to be dug under schools and teaching Palestinian children to deny the existence of the state of Israel.

"It is time for this absurdity to end and for humanitarian funds to be directed toward their intended purpose -- the welfare of refugees," he declared.

The Palestinians also saw the US decision as political.

A statement issued by Hanan Ashrawi of the executive council of the Palestine Liberation Organization accused Washington of seeking to dismantle UNRWA at Israel's behest.

She accused the US of "targeting the most vulnerable segment of the Palestinian people.

"It is also creating conditions that will generate further instability throughout the region and will demonstrate that it has no compunction in targeting the innocent," she said.

UNRWA has provided health care, emergency aid and schooling to Palestinians since 1950.

The United States has long been its biggest donor, with large voluntary payments topping up the budget that other UN member states provide for the frontline agency.

UN Secretary-General Antonio Guterres said he had not been informed of Washington's decision, but was "very concerned" by reports that it was in the works.

"UNRWA is not a Palestinian institution, but a UN institution, he protested.</s>Jan. 16 (UPI) -- The U.S. State Department confirmed Tuesday it will withhold more than half of its funding to the U.N. Relief and Works Agency, which provides aid to Palestinian refugees.

The United States will withhold $65 million of its previously planned $125 million tranche of funding to the UNRWA, while continuing to send $60 million to avoid a "negative impact."

"It's money that's being frozen at this time," State Department spokeswoman Heather Nauert said of the $65 million. "It's not being canceled. It's just being held for future considerations."

U.S. Ambassador to the United Nations Nikki Haley previously said the United States would freeze UNRWA funding unless Palestinians returned to negotiations with Israel after President Donald Trump moved to recognize Jerusalem as Israel's capital.

Nauert said the decision to withhold funding to UNRWA was due to concerns about how it is managed and additional funding will be dependent on changes being made at the agency.

"I can tell you that it has long been a concern of this administration -- a year into the administration --about UNRWA and how it handles itself and manages its money," she said.

The United States contributes $364 million annually in two installments to the agency, which provides healthcare and social services to Palestinians in the West Bank, the Gaza Strip and neighboring countries.

Prior to the announcement that the funds had been withheld, U.N. Secretary-General Antonio Guterres warned cutting UNRWA funding could impact create a "serious problem" for Palestinian refugees.

"It is an important factor of stability, so if UNRWA will not be in a position to provide the vital services and the emergency forms of support that UNRWA has been providing, these will create a very, very serious problem, and we will do everything we can to avoid the situation to occur," Guterres said.

Following the cuts, the United States is asking other countries to contribute more to the agency, according to Nauert.

"We don't believe that taking care of other nations and other people has to solely be the United States' responsibility," she said.</s>
• The US announced it would suspend $65 million in aid to Palestinian refugee group UNRWA.
• The State Department said it would still offer a voluntary package of $60 million to the UN aid group to sustain Palestinian schools and health services.
• Israel has also previously recommended the US gradually reduce its aid to UNRWA.
• To date, roughly 5 million Palestinian refugees across several countries benefit from UNRWA's assistance programs.



 The US announced it would suspend $65 million in aid to Palestinian refugee group UNRWA on Tuesday, and pledged to give about half of what they had previously offered the agency.

According to UNRWA, the US provided more than $350 million in aid to the organization in 2017.

The State Department said in its daily briefing that it would offer a voluntary package of $60 million to the UN aid group to sustain Palestinian schools and health services, and would help provide salaries to health and teaching professionals.

The Department said an additional $65 million will be held for "future consideration," and added that it hoped to see some reforms in the operational structure of the organization.

The spokeswoman said that the US has been the "largest single donor to UNRWA," and said the country is " the most generous nation on the globe." She urged other countries to step up and invest more aid into UNRWA's programs.

The briefing did not get into the specifics of why the US decided to cut its aid, and would not confirm if it was related to President Donald Trump tweeting earlier this month that the US pays the Palesitian organizations but gets "no appreciation or respect," and that the organizations are "no longer willing to talk peace."

Trump's rhetoric angered the Palestinians, who have argued that his policies in the Middle East strongly favor Israel and the US could no longer be viewed as an impartial broker for peace.

Trump's decision to cut aid to Palestinians may also have been influenced by recent comments by Israeli Prime Minister Benjamin Netanyahu, who said last week that UNRWA needs to disappear from the face of the earth because it perpetuates Palestinian suffering. Israel has also previously recommended the US gradually reduce its aid to UNRWA, Israeli media reported, advice that the US seems to have taken.

UNRWA, or the United Nations Relief and Works Agency for Palestinian Refugees is a special aid unit created by the United Nations after the end of the Israeli-Arab war in 1948. Israel declared Independence and gained recognition from several international bodies that year, but displaced roughly 750,000 Palestinians living in the disputed land.

The United Nations created the unit in 1949 to provide assistance and development opportunities to the influx of Palestinian refugees created as a by-product of Israel's creation. The aid benefits extend to refugees expelled from their homes in 1948, as well as their descendants, a clause unique to UNRWA.

To date, there are roughly 5 million Palestinian refugees across several countries, including Lebanon, Jordan and Syria, who benefit from UNRWA's assistance programs.

According to UNRWA's website, the organization covers services like education and health care. They also provide social protection services and food aid to improve the physical and social well being of the refugees in refugee camps.

Israel has condemned UNRWA in the past, and has been critical of militant groups in the Gaza strip using UNRWA facilities to store weapons.

UNRWA will still provide its services, despite cuts

According to UNRWA Commissioner-General Pierre Krähenbühl, the US' aid cuts to UNRWA is likely to jeopardize the education and security of the millions of Palestinian refugees that benefit from aid programs.

"At stake is the access of 525,000 boys and girls in 700 UNRWA schools, and their future ... the human security of millions of Palestine refugees, in need of emergency food assistance and other support in Jordan, Lebanon, Syria, and the West Bank and Gaza Strip ... and the dignity of an entire community," Krähenbühl told Business Insider in a statement.

Krähenbühl added that the US' decision will also impact the security of the region at large, at a time when "the Middle East faces multiple risks and threats, notably that of further radicalization."

Faced with severe budget cuts, Krähenbühl said the organization urges Member States of the United Nations to show support for UNRWA and create "new funding alliances and initiatives." UNRWA said it created a social media campaign under the slogan #FundUNRWA in the hopes to have its message spread across global platforms.

Krähenbühl stressed that UNWRA's aid will not be deterred by cuts: "We are working with absolute determination to ensure that UNRWA services continue."

"This is a moment for internal cohesion and solidarity. Times are very critical but we will do our utmost to protect [UNRWA members]."</s>WASHINGTON, United States — The United States sent $60 million to keep the UN relief agency for Palestinians (UNRWA) in operation but withheld a further $65 million while it urged others to pay more, a State Department official said Tuesday.

“There is a need to undertake a fundamental re-examination of UNRWA, both in the way it operates and the way it is funded,” the official said.

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The official told AFP the decision to withhold some funds was meant to encourage more “burden-sharing” by other members.

“The United States has been UNRWA’s single largest donor for decades. In years past, we contributed some 30 percent of UNRWA’s total income,” he said.

“Without the funds we are providing today, UNRWA operations were at risk of running out of funds and closing down.

“The funds provided by the United States will prevent that from happening for the immediate future.”

US President Donald Trump earlier this month threatened to cut US aid to the Palestinians, saying on Twitter that Washington gets “no appreciation or respect” from the Palestinians.

“We pay the Palestinians HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect,” Trump tweeted on January 3.

“With the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?”

Although Trump referred to all US assistance to the Palestinians, the contribution to the refugee agency would be the first to be affected.

Israel has often criticized UNRWA, accusing it of sheltering terrorists and allowing Palestinians to remain refugees even after settling in a new city or country for many generations, thus complicating a possible resolution to the Israeli-Palestinian conflict.

The State Department announcement was hailed by Israel’s Ambassador to the United Nations Danny Danon on Tuesday.

“UNRWA has proven time and again to be an agency that misuses the humanitarian aid of the international community and instead supports anti-Israel propaganda, perpetuates the plight of Palestinian refugees and encourages hate,” Danon said in a statement.

“Just over the last year alone, UNRWA officials were elected to the leadership of Hamas in the Gaza Strip, UNRWA schools denied the existence of Israel, and terror tunnels were dug under UNRWA facilities. It is time for this absurdity to end and for humanitarian funds to be directed towards their intended purpose – the welfare of refugees,” he added.

The agency focuses on providing health care, education and social services to Palestinians in the West Bank, Gaza Strip, Jordan, Syria and Lebanon.

On Monday, the United Nations said the work of the agency was “critical” and if the United States or any other donor cuts its contributions “we will have to find other sources.”

Human Rights Watch director Kenneth Roth on Monday called the US move “vindictive” and a “bullying tactic,” as he urged other governments to step in and fill the gap if the United States decides to definitely cut funding.

“It is vindictive for the US government to deprive the UN of money to feed and educate Palestinian children in order to blackmail the Palestinian Authority into rejoining Trump administration-led peace negotiations,” Roth said in a statement.</s>The United States held back $65 million that had been destined for the United Nations relief agency for Palestinians on Tuesday, two weeks after President Donald Trump threatened future payments.

State Department officials insisted the decision was not taken to pressure Palestinian leaders, but because the US wants other countries to help pay for and reform UNRWA.

But the call came after a behind-the-scenes tussle between hawks who want to cut all aid to Palestinians and officials concerned about the humanitarian and diplomatic fallout.

The State Department said $60 million of what had been a planned $125 million package would go through to keep the agency running, but the rest will be withheld for now.

"This is not aimed at punishing anyone," spokeswoman Heather Nauert told reporters.

"The United States government, and the Trump administration, believe that there should be more so-called burden-sharing to go around," she said.

"We would like other countries, in fact other countries that criticize the United States for what they believe to be our position vis-a-vis the Palestinians... to step forward."

The head of the UN Relief and Works Agency for Palestinian Refugees (UNRWA), Pierre Krahenbuhl, expressed alarm and immediately called on other UN members to contribute.</s>(WASHINGTON) — The Trump administration on Tuesday cut tens of millions of dollars in money for Palestinian refugees, demanding that the U.N. agency responsible for the programs undertake a “fundamental re-examination,” the State Department said.

In a letter, the State Department notified the U.N. Relief and Works Agency that the U.S. is withholding $65 million of a planned $125 million funding installment. The letter also makes clear that additional U.S. donations will be contingent on major changes by UNRWA, which has been heavily criticized by Israel.

“We would like to see some reforms be made,” said State Department spokeswoman Heather Nauert, adding that changes are needed to the way the agency operates and is funded. “This is not aimed at punishing anyone.”

The State Department said it was releasing the rest of the installment — $60 million — to prevent the agency from running out of cash by the end of the month and closing down.

The U.S. is UNWRA’s largest donor, supplying nearly 30% of its budget. The agency focuses on providing health care, education and social services to Palestinians in the West Bank, Gaza Strip, Jordan, Syria and Lebanon.

“Given the long, trusted, and historic relationship between the United States and UNRWA, this reduced contribution threatens one of the most successful and innovative human development endeavors in the Middle-East,” UNRWA chief Pierre Krähenbühl said in a statement.

Hundreds of thousands of Palestinians either fled or were forced from their homes during the war that led to Israel’s establishment in 1948. Today, there are an estimated 5 million refugees and their descendants, mostly scattered across the region.

The Palestinian Liberation Organization reacted angrily to the move, saying it is targeting “the most vulnerable segment of the Palestinian people and depriving the refugees of the right to education, health, shelter and a dignified life.”

“It is also creating conditions that will generate further instability throughout the region and will demonstrate that it has no compunction in targeting the innocent,” the PLO leadership said in a statement.

U.N. Secretary-General Antonio Guterres said he was not aware of the decision, but warned that UNRWA provides “vital services.”

“I am very concerned and I strongly hope that in the end it will be possible for the United States to maintain the funding of UNRWA in which the U.S. has a very important share,” he told reporters at the U.N.

Israel’s ambassador to the U.N., Danny Danon, praised the move, arguing that UNRWA misuses humanitarian aid to support propaganda against the Jewish state and perpetuate the Palestinians’ plight.

“It is time for this absurdity to end and for humanitarian funds to be directed towards their intended purpose: the welfare of refugees,” Danon said in a statement.

The U.S. donated $355 million to UNWRA in 2016 and was set to make a similar contribution in this year, with the first installment to have been sent this month. But after a highly critical Jan. 2 tweet from Trump on aid to the Palestinians, the State Department opted to wait for a formal policy decision before sending its first installment.

Trump’s tweet expressed frustration over the lack of progress in his attempts to broker peace between Israel and the Palestinians, and he pointed the finger at the Palestinians. “We pay the Palestinians HUNDREDS OF MILLIONS OF DOLLARS a year and get no appreciation or respect,” he said. “But with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?”

Israelis accuse the U.N. agency of contributing to Palestinian militancy and allowing its facilities to be used by militants. They also complain that some of UNRWA’s staff are biased against Israel.

Nauert said the United States believes there needs to be more “burden-sharing,” a regular Trump complaint about multilateral organizations dependent on significant contributions of U.S. cash.

“We don’t believe that taking care of other nations and other people have to be solely the United States’ responsibility,” she said.

The U.S. plan to withhold some, but not all, of the money was backed by Secretary of State Rex Tillerson and Defense Secretary James Mattis, who offered it as a compromise to demands for more drastic measures by U.N. Ambassador Nikki Haley, officials said.

Haley wanted a complete cutoff in U.S. money until the Palestinians resumed peace talks with Israel that have been frozen for years. But Tillerson, Mattis and others argued that ending all assistance would exacerbate instability in the Mideast, notably in Jordan, a host to hundreds of thousands of Palestinian refugees and a crucial U.S. strategic partner.

Eliminating or sharply reducing the U.S. contribution could hamstring the agency and severely curtail its work, putting great pressure on Jordan and Lebanon as well as the Palestinian Authority. Gaza would be particularly hard hit. Some officials, including Israelis, warn that it might push people closer to the militant Hamas movement, which controls Gaza.
The United States will withhold $65 million for Palestinian aid paid via the United Nations Relief and Welfare Agency stating that UNRWA needs to make unspecified reforms. The U.S. says it will provide $60 million, 48 percent of the regular payment.