The decision to cut US foreign aid to the Palestinians was announced by US President Donald Trump's administration in August 2018.

"At the request of the Palestinian Authority, we have wound down certain projects and programs funded with assistance under the authorities specified in ATCA in the West Bank and Gaza", a US official told, referring to the Anti-Terrorism Clarification Act.

Commenting on the upcoming move in January, former USAID mission director and managing director of the Georgetown Strategy Group Dave Harden expressed his regret, stating that the White House "gave Hamas more running room" to influence the Palestinians.

The Anti-Terrorism Clarification Act of 2018 stipulates that foreign governments which accept aid from Washington will be eligible for prosecution in US courts for damages as a result of terrorism. Addressing the bill, the Palestinian authority stated it would not accept any funds from the US government.