U.S. ready to withhold money for Palestinian refugees

WASHINGTON — 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.

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 Israeli criticism, to demonstrate significant changes in operations, they said, adding that one suggestion under consideration would require the Palestinians to first re-enter peace talks with Israel.

The State Department said Sunday that “the decision is under review. There are still deliberations taking place.”

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.

Haley wants a complete cutoff in U.S. money until the Palestinians resume peace talks. But Tillerson and Mattis say ending all aid would exacerbate instability in the Mideast, notably in Jordan, a host to hundreds of thousands of Palestinian refugees.