The Defense Appropriations Act provides $500 million of funding for the testing and procurement of the Iron Dome, David's Sling and Arrow.
Israel has charged that 12 UNRWA staff members were involved in the attack and has published videos showing the actions of some of those employees on that day.
The US Senate passed legislation last month cutting off funding for the agency, part of a $95 billion bill providing aid to Israel that has stalled in the House of Representativies.
UNRWA’s schools have consistently been found to use material directly inciting students to terrorism and antisemitism.
Google searches for 'donate to Gaza' have dramatically jumped since the outbreak of the Israel-Hamas war, specifically in the US, as searches for other aid organizations have also increased.
The AIJAC voiced its “grave disappointment” at the decision.
The Canadian FM is on a diplomatic tour in the Middle East, including visits to Israel, the West Bank, Saudi Arabia, Kuwait, and the United Arab Emirates.
William Deere, director of UNRWA's Washington Representative Office, told Reuters that US support accounts for one-third of UNRWA's budget.
As of Monday, since the beginning of the war, 16,405 trucks of humanitarian aid were inspected and transferred to the Gaza Strip.
The sources also said that UNRWA could be replaced with the World Food Program.