The United States is cutting more than $200 million in aid to the Palestinians, the State Department said Friday, amid a deteriorating relationship with the Palestinian leadership.

A senior State Department official said without elaborating that the funds, originally planned for programs in the West Bank and Gaza, would address "high-priority projects elsewhere."

"We have undertaken a review of U.S. assistance to the Palestinian Authority and in the West Bank and Gaza to ensure these funds are spent in accordance with U.S. national interests and provide value to the U.S. taxpayer," the official said in a statement.