WASHINGTON - The United States has frozen $125 million in funding for a UN agency that provides aid to Palestinian refugees, Axios news site reported on Friday, citing three unidentified Western diplomats.
The diplomats said funding, a third of the annual U.S. donation to the United Nations Relief and Works Agency, was supposed to be delivered by Jan. 1 but was frozen until the administration of US President Donald Trump finishes its review of US aid to the Palestinian Authority, Axios reported.
A US official denied the Channel 10 story on Friday afternoon, after it spread through US media.
"This story is not true," the official told The Jerusalem Post.
"Just because they were expecting the money on the first, and they did not get at that time, does not mean it was suspended or cancelled. Deliberations are ongoing, and we have until mid January to make a final decision."
“There is no existing schedule that obligates the US to provide specific amounts of aid to UNWRA on specific dates,” but the matter ultimately lies with the secretary of state, a senior administration official told The Jerusalem Post
. “At this time no such decisions have been made.”