U.S. set to cut U.N. money for Palestinian refugees

The Trump administration is preparing to withhold tens of millions of dollars from the U.N. agency for Palestinian refugees, cutting the year’s first contribution by more than half or perhaps entirely, and making additional donations contingent on major changes to the organization, according to U.S. officials.

U.S. President Donald Trump hasn’t made a final decision, but appears more likely to send only $60 million of the planned $125 million first installment to the U.N. Relief and Works Agency, said the officials, who weren’t authorized to publicly discuss the matter and spoke on condition of anonymity.

Future contributions would require the agency, facing heavy Israeli criticism, to demonstrate significant changes in operations, they said, adding that one suggestion under consideration would require the Palestinians to first reenter peace talks with Israel.

The State Department said Sunday that “the decision is under review. There are still deliberations taking place.” The White House did not immediately respond to questions about the matter.

The administration could announce its decision as early as Tuesday, the officials said. The plan to withhold some of the money is backed by Secretary of State Rex Tillerson and Defense Secretary James Mattis, who offered it as a compromise to demands for more drastic measures by U.N. Ambassador Nikki Haley, the officials said.