The Trump administration is withdrawing $25 million it had committed to the East Jerusalem Hospital Network after a review found that the funds were not advancing U.S. interests, a State Department official said.
The decision follows an announcement last month that the U.S. would cut more than $200 million in aid to the Palestinians.
It also comes days after the state department said it would end funding to the United Nations relief agency for Palestinian refugees, raising fears that programs already straining to help millions of people will collapse and that unrest could ensue, NBC News reported.
The Palestinians had held out hope that the hospital money would be spared because it was not included in the $200 million aid cut. On Saturday, the Palestinian Authority denounced the administration's move as "an act of political blackmail."