US President Donald Trump has requested more than $200m (£155m) in financial guide which was to be dispensed to Gaza and the West Bank be diverted somewhere else.
A State Department official said the choice was made after a survey “to guarantee these assets are gone through as per US national interests”.
It has just withheld $65m from the UN alleviation organization for the Palestinians.
Relations between the Palestinians and the US have been troublesome since Mr Trump took control.
They hit a low point after the US perceived Jerusalem as Israel’s capital in December 2017. Thus, the Palestinians said the US was not able proceed with its intervention part in the peace procedure and suspended contact.
Why Trump’s international safe haven move was not about peace
UN frightened as US slices help to Palestinian displaced person organization
Palestinian regions profile
The US organization, in the mean time, suspended guide to the Palestinians pending an audit in the light of the Taylor Force Act back in June.
The demonstration meant to drive the Palestinian Authority to stop paying stipends to groups of people indicted psychological warfare against Israel.
Donald Trump’s organization has just withheld millions in help
On Friday, a State Department representative said the choice to “divert” the assets to other “high-need ventures” was made because of the audit, yet did not say where the cash would now go.
Both the Palestinians and the United Nations Relief and Works Agency cautioned cutting subsidizing would make regular daily existence harder for the domains’ natives
In any case, the US official said the choice considered “the difficulties the global network faces in giving help with Gaza, where Hamas control jeopardizes the lives of Gaza’s residents and debases an effectively desperate compassionate and financial circumstance”.