Palestinians have accused the White House of using the agency - and the welfare of refugees - as a bargaining chip to pressure Palestinian leadership into a US -brokered peace deal with Israel.
The shake-up is part of the Trump administration's bid to cut its spending overseas, and as the White House drafts its Middle East peace plan.
However, the statement said the U.S. would look for other ways to aid the Palestinians.
It now provides services to five million Palestinian refugees in the occupied West Bank and Gaza Strip, as well as Jordan, Lebanon and Syria.
Just hours after the Palestinians warned such a move would further undermine the already flailing chances of peace with Israel, Ms Nauert said there would be no additional contributions beyond a $60 million dollar payment in January. The remaining amount - around $290 million - had yet to be allocated.
The US donated $355 million to the agency in 2016 and was set to make a similar contribution this year. Several countries, including Jordan, Egypt, Sweden, Qatar, and the UAE have shown leadership in addressing this problem, but the overall worldwide response has not been sufficient.
But worldwide efforts appear to have done little to assuage the Trump administration's concerns over the United Nations agency's fundamental business model, which it called "simply unsustainable" and described as being in "crisis mode for many years".
A spokesman for UN Secretary General Antonio Guterres' office released a statement late Friday regretting the Trump administration's decision to cut UNRWA funding, saying the UN has appreciated years of United States support for the agency.
The major difference between the two agencies, one of which caters exclusively to "Palestinians" and the other to all the rest of the world's refugees, is that while UNHCR attempts to solve refugee problems by relocating people from trouble areas, UNRWA makes sure they all stay put in sub-human conditions, for seven decades now, with the hope of one day being allowed back in their families' homes in Lod, Ramleh, and Jaffa. Today, there are an estimated 5 million refugees and their descendants, mostly scattered across the region.
The "right of return" is one of the key core issues of dispute in the Israeli-Palestinian conflict.
The State Department also announced last week that Washington had canceled over $200 million in funds for the Palestinian Authority, leading Palestinian officials to denounce the move as "blackmail".
"The consecutive American decisions represent a flagrant assault against the Palestinian people and a defiance of United Nations resolutions", Palestinian Authority spokesperson Nabil Abu Rdainah told Reuters news agency on Friday.
America has contributed nearly 30% to the total budget of the UN Relief and Works Agency (UNRWA).
Senior members of the Trump administration have been overtly critical of UNRWA, including national security adviser John Bolton.
It is also a response, in the words of Nikki Haley, the U.S. ambassador to the United Nations, to continued Palestinian hostility toward America, which has intensified following USA policy changes that Palestinians deem pro-Israeli.
In Gaza, the group Hamas also condemned the USA move as a "grave escalation against the Palestinian people". She called on Middle East nations to increase aid.
Water is sacred", he said, adding the federal government "never ever ever got our consent" for the pipeline. The board's review concluded that the project wouldn't have significant environmental consequences.
She pledged that the United Kingdom would assist Nigeria in the fight against terrorists as well as human trafficking. He stated this in Abuja, on Wednesday, when he received May, who was on a visit to Nigeria.
Ms Bouquet is also a successful French actress who plaid Melina Havelock in the 1981 James Bond film For Your Eyes Only. He failed to turn up at the court hearing at which he was fined €4,000 and had his licence suspended for six months.
Biden, 24 sitting US senators, four former senators and other leaders were expected to attend the memorial. And I love John McCain ", Biden said when he took the stage in Arizona , sparking laughter in the crowd.
The second half was less impressive, as Spurs stepped up a level and put two quick goals past United , all but ending the game. Manchester United suffered a humiliating 3-0 loss against Tottenham Hotspur to compound a disastrous few weeks for the club.
The draw for the group stage, taking place at the Grimaldi Forum in Monaco, starts at midday United Kingdom time. Arsenal and Chelsea are joined in pot one by Bundesliga side Bayer Leverkusen and Villarreal of Spain.
The extension, which includes more than $100 million in guarantees, keeps Rodgers under contract for the next six seasons. The 14th-year veteran is the league's all-time leader in passer rating (103.8) and interception rate (1.6 percent).
The United manager told friends this summer that he wanted to get rid of Martial because he was... "The rest is just noise". With just three games played, United already find themselves six points behind Liverpool and local rivals Manchester City .
Trump tweeted about McCain after his death but has passed up several chances to comment publicly on the Arizona senator. President Trump reversed course Monday, ending his conspicuous silence about the death of his political rival Sen.
McCain had been planning his funeral services over the a year ago and his family made clear that president Trump was not invited. The repeal was a Trump priority, and the president never forgave McCain. - Two former presidents are expected to speak at Sen.
TS Norman forms over eastern Pacific; could become…
By mid-day Sunday, current forecast models have Miriam downgraded to a post-tropical remnant low with 35 miles per hour winds. Throughout today Hawaii is likely to experience showers and heavy rains, as the tail end of Hurricane Lane passes by.
Seven dead after bus, truck collide head-on
Images of Thursday's scene on U.S. media show vast area of debris and a bus missing its front section up to the front tires. Greyhound says the bus was heading from Albuquerque to Phoenix and there were 49 passengers on board.
Star-studded funeral honours Aretha Franklin
A tribute concert , starring The Four Tops, Angie Stone and Regina Belle was also hosted on Thursday evening in her honour. The gold dress is the fourth outfit Franklin has worn during a week of events leading up to her funeral.
Gerard Pique opens Barcelona door for Paul Pogba
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Teddy Bridgewater Traded To The New Orleans Saints
He has thrown for 316 yards with two touchdowns and one interception over three games while completing 28 of 38 passes. This article dug into Bridgewater's stats and film to look at why he can be a franchise quarterback ....