Reduction of U.S. Aid to the United Nations Agency for Palestinian Affairs

The U.S. State Department has announced that Washington will temporarily withhold $65 million of its annual aid to the United Nations agency that assists Palestinians, while providing $60 million to ensure that essential institutions like schools and hospitals do not face budget shortages. Heather Nauert, the spokesperson for the U.S. State Department, stated on January 16 that the $65 million has not been 'cut off' but is currently on hold. She added that Washington intends to witness 'reforms' before making a final decision. According to Nauert, changes are needed in both the operations and budget of the UN agency, known as UNRWA, which provides aid and employment for Palestinian refugees. Earlier in January, an Israeli television network reported, citing 'three Western diplomats,' that $125 million of the annual U.S. aid to UNRWA, which was supposed to be provided on January 1, has not been disbursed. These reports emerged following a series of events, including President Donald Trump's announcement recognizing Jerusalem as Israel's capital, after which the Palestinian Authority declared that it no longer considers the U.S. a partner in peace negotiations. The U.S. government stated that previous approaches and efforts to create peace between Israel and the Palestinians have yielded no results, necessitating a new approach. However, Trump's recognition of Jerusalem faced various reactions and criticisms, including from some of Washington's allies. Shortly thereafter, Trump threatened that U.S. aid to the Palestinian Authority could be cut off, criticizing the Palestinian Authority on Twitter for not showing appreciation or respect despite receiving millions of dollars annually. Following various reports about the reduction or cessation of aid to Palestinians, Mahmoud Abbas, the President of the Palestinian Authority, expressed strong criticisms against the U.S. government, which in turn drew responses from the Israeli government, with Prime Minister Benjamin Netanyahu stating that Abbas's remarks 'removed the mask from his face.' The United States is the largest donor of non-repayable financial aid to the Palestinians, with U.S. contributions to UNRWA amounting to about $370 million in 2016.