He also said that foreign assistance “serves important US interests and values” and “aligns with the values and interests of our allies and partners.”
Mr Blinken reiterated the US’s commitment to advancing “prosperity, security, and freedom for both Israelis and Palestinians in tangible ways in the immediate term” including as a means to advance towards a two-state solution.
The announcement was welcomed by Palestinian leaders but criticised by Israeli ambassador to the UN and US Gilad Erdan.
The top Israeli diplomat said he believes UNRWA should “not exist in its current format.”
“Rather than solving the conflict, UNRWA perpetuates it. Any return to funding it must be contingent on essential reforms,” Mr Erdan added.
