US Ambassador to the UN Nikki Haley said that the US should cut its funding to the United Nations Relief and Works Agency (UNRWA) until the organization reforms.

"We mentioned to UNRWA multiple times it needs to be reformed,” Haley told Voice of America host Greta Van Susteren.

The ambassador sad that UNRWA views all Palestinian Arabs as refugees regardless of where they live, where they were born, or whether or not they have citizenship in another country. "When we say that we’re basically looking at the fact that you’ve got, basically they’re considering Palestinian as a refugee. Looking at the fact that what they’re teaching in schools is not necessarily the right way to have things run. It is very top heavy from an administration standpoint."

She also said that the US would not continue to reward the Palestinian Authority if it continues to reject US mediation and refuses to engage in peace negotiations. "We’re not going to reward bad behavior. Here you’ve got the Palestinians who are basically saying they’re going to cut the U.S. out of the peace process. They’re saying they no longer want to have anything to do with us. They go and take us to the United Nations and try, basically, are very hostile in what they say and what they do. We’re not going to pay to be abused. It doesn’t make sense."

She accused the Palestinian Authority of being "not serious in truly getting to peace."

The US slashed $65 million from a $125 million grant to UNRWA this week. The United States is the largest single donor to UNRWA, providing approximately a fourth of the organization's budget.

For years, UNRWA has been a target for criticism in light of Hamas's activity in its educational institutions and the use of its facilities by Palestinian Arab terrorist organizations in Gaza.

UNRWA was documented storing Hamas rockets and weapons "designed to kill Israeli citizens" in its schools, a fact which the UNRWA chief admitted himself.

In addition, the organization has actively taken part in inciting anti-Semitic violence.

It has perpetuated the status of Palestinian "refugees" for generations instead of working towards their absorption in host countries, continuing to call residents of camps located in the Palestinian Authority refugees. Audits have shown that the number of "refugees" in UNRWA lists is highly inflated.