Ramallah, Jan 17 (IANS): The UN relief agency for Palestinians said on Wednesday that it has launched an international crowdfunding campaign after the US cut aid to the agency by over 50 per cent.

The US has decided to decrease its contribution to the UN Relief and Works Agency for Palestine Refugees (UNRWA) to $60 million in 2018, which is much less than $364 million in 2017, said agency spokesperson Sami Mshasha.

"This decision is shocking and affects 525,000 students and millions of Palestinian refugees," Mshasha said, adding that "it could also affect regional stability", Xinhua news agency reported.

Washington will withhold $65 million out of its scheduled $125 million payment to the agency, which provides humanitarian aid, education, social services and medical care to Palestinian refugees in the West Bank, Gaza Strip, Jordan, Syria and Lebanon.

The spokesperson also said the UNRWA services will not stop despite the US aid cut, saying "we will do our best to maintain the vital services".

"We are already in huge deficit and we've contacted all donors from the international community to help us provide services and protection for the refugees," he said.