WASHINGTON (AP) - The Trump administration on Tuesday cut tens of millions of dollars in money for Palestinian refugees, demanding 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 the U.S. is withholding $65 million of a planned $125 million funding installment. The letter also makes clear 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," State Department spokeswoman Heather Nauert said, adding 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 percent 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 Krhenbhl said in a statement.
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.
U.N. Secretary-General Antonio Guterres said he was not aware of the decision, but warned 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.
Israel's ambassador to the U.N., Danny Danon, praised the move, arguing UNRWA misuses humanitarian aid to support propaganda against the Jewish state and perpetuate the Palestinians' plight.