The United States is ending all funding for the UN's Palestinian refugee agency, the US State Department says.
It described the organisation, the United Nations Relief and Works Agency (Unrwa), as "irredeemably flawed".
The US administration has "carefully reviewed" the issue and "will not make additional contributions to Unrwa," spokeswoman Heather Nauert said.
A spokesman for Palestinian President Mahmoud Abbas later said the move was an "assault" against his people.
Unrwa was originally set up to take care of hundreds of thousands of Palestinians displaced by the 1948 Arab-Israeli war.
The agency currently supports more than five million people across the Middle East, including providing health care, education and social services.
The US has been the largest single donor to Unrwa, providing $368m (£284m) in 2016 and funding almost 30% of its operations in the region.
The Trump administration had pledged $60m to Unrwa in January, but withheld another $65m pending a review. That remaining payment of $65m is now expected to be cancelled.
In January, US President Donald Trump indicated a change in approach when he tweeted that the US received "no appreciation or respect" for the large sums of aid it provided to the region.
However, on Friday, German Foreign Minister Heiko Maas said his country would increase its contributions to the agency because its funding crisis was fuelling uncertainty.
BBC Online
BDST: 1030 HRS, SEPT 1, 2018
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