The United States Congress has reportedly blocked $200 million in aid to the Palestinian Authority since August, in a move a PA official described as "collective punishment" for its United Nations bid.
One third of U.S. aid had been blocked, threatening projects such as food aid, health care, and rebuilding efforts, the Independent reports.
It says PA spokesman Ghassan Khatib called the move "unjustified".
The United States is opposed to the Palestinian bid to seek full UN membership and has vowed to veto such a move in the Security Council.
"These are mainly humanitarian and development projects – it is another kind of collective punishment which is going to harm the needs of the public without making any positive contribution", Ghassan Khatib said.
In mid-September, the U.S. House Foreign Affairs Committee began debating cutting off US aid to the Palestinian Authority for breaking ranks with the American-brokered peace process, the Jerusalem Post reports.
The Independent reports:
The decision to delay the payments runs counter to the wishes of the Obama administration and reflects Congressional anger at Palestinian President Mahmoud Abbas's so far unrealized pursuit of Fatah-Hamas reconciliation and statehood recognition at the UN.
The freezing of the funds, which were to have been dispersed in the US fiscal year that ends today, is the most tangible sign yet of the seriousness of Congressional leaders' threats of an even wider halt to funding in the coming year if Mr Abbas continues with his actions at the UN. It was strongly condemned yesterday by the Palestinian Authority.
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