"The United States will no longer devote more funds to the hopelessly defective operation," Department spokeswoman Heather Nauert said in a statement.
The United States, historically the principal donor country of UNRWA, had drastically reduced its contributions. From $ 350 million in 2017, the amount has risen to $ 65 million by 2018.
"Cutting aid to UNRWA means that the United States is giving up its international commitments and responsibilities," said Hossam Zomlot, who officially represents Palestine in the Organization for the Liberation of Palestine (PLO) of President Mahmoud Abbas.
"By adopting the most extreme Israeli positions on all issues, including the rights of more than five million Palestinian refugees, the US administration has lost its mediator status and is not only undermining an already unstable situation, but also the possibilities for peace future in the Middle East, "the ambassador added in a statement sent before the announcement.
He also pointed out that "it is not for the US administration to define the status of Palestinian refugees, the only condition the United States can define is its own role as peace broker in the region," said Hossam Zomlot.
"There are countless refugees who continue to receive assistance," while the Palestinian government "continues to criticize the United States," US ambassador Nikki Haley said this week. "I think we have to look at the right of return," he added.
The Palestinian Authority has rejected any contact with Washington since Donald Trump announced at the end of 2017 that he recognized Jerusalem as the capital of Israel. The United States also last week announced the cancellation of more than $ 200 million in bilateral aid to the Palestinians.
