Haley wants a complete cutoff in U.S. money until the Palestinians resume peace talks with Israel that have been frozen for years. But Tillerson, Mattis and others say ending all assistance would exacerbate instability in the Mideast, notably in Jordan, a host to hundreds of thousands of Palestinian refugees and a crucial U.S. strategic partner.

The lone holdout was Haley’s representative, who insisted that Trump’s tweet had set the policy and the money must be cut off, the officials said.

Israeli Prime Minister Benjamin Netanyahu then weighed in, telling his Cabinet that he agreed with the critique of the agency. He said the agency only perpetuates problems and should cease operating in the region. Netanyahu and other Israelis accuse it of contributing to Palestinian militancy and allowing its facilities to be used by militants. They have also complained that some of its staff are biased against Israel.

Trump’s tweet expressed frustration over the lack of progress in his attempts to broker peace between Israel and the Palestinians, and he pointed his finger at the Palestinians. “We pay the Palestinians HUNDREDS OF MILLIONS OF DOLLARS a year and get no appreciation or respect,” he said. “But with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?”

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.

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