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...