Washington, Aug 25 : US President Donald Trump has ordered more than $200 million in economic aid which was to be allocated to Gaza and the West Bank be redirected elsewhere.
A State Department official said the decision was made after a review "to ensure these funds are spent in accordance with US national interests", BBC reported on Friday.
It has already withheld $65 million from the UN relief agency for the Palestinians. Relations between the Palestinians and the US have been difficult since Trump took power.
They hit a low point after the US recognised Jerusalem as Israel's capital in December 2017. As a result, the Palestinians said the US was unable to continue its mediation role in the peace process and suspended contact.
The US administration, meanwhile, suspended aid to the Palestinians pending a review in the light of the Taylor Force Act back in June. The act aimed to force the Palestinian Authority to cease paying stipends to families of individuals convicted of terrorism against Israel.
On Friday, a State Department spokesman said the decision to "redirect" the funds to other "high-priority projects" was made as a result of the review, but did not say where the money would now go.
Both the Palestinians and the United Nations Relief and Works Agency warned cutting funding would make everyday life harder for the territories' citizens
However, the US official said the decision took into account "the challenges the international community faces in providing assistance in Gaza, where Hamas control endangers the lives of Gaza's citizens and degrades an already dire humanitarian and economic situation".
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Washington DC: The White House has reportedly ruled out the use of nuclear weapons against Iran, even as uncertainty continues over ongoing peace negotiations and a deadline set by US President Donald Trump approaches.
Issues bout a possible escalation had increased after US Vice President JD Vance said that the United States has “tools in our toolkit that we so far haven’t decided to use” in dealing with Iran.
His remarks came amid rising tensions and ahead of a deadline linked to peace efforts.
The situation has attracted attention as Trump warned Iran that its “whole civilization will die tonight tonight” if an agreement is not reached by Tuesday at 8 pm.
This statement led to speculation about the possibility of extreme military measures, including a nuclear strike.
Following Vance’s comments, the White House issued a clarification distancing itself from such interpretations. In a post on X, it said, "Literally nothing @VP said here 'implies' this, you absolute buffoons." In a later statement, it added that “only the president knows” what action will be taken regarding Iran.
Literally nothing @VP said here "implies" this, you absolute buffoons https://t.co/7JU3wXMaWX
— Rapid Response 47 (@RapidResponse47) April 7, 2026
