Why did the Palestinian Authority cut funding to the Gaza Strip in 2018?

The Palestinian Authority (PA) decided to cut funding to the Gaza Strip in 2018 primarily due to its inability to gain full governance and control over public institutions in the territory, despite efforts to implement reconciliation agreements with Hamas.12

Following a 2017 agreement, the PA had begun to take over some government functions in Gaza; however, when it became clear that the PA could not fully exercise its authority, it chose to reduce funding and retreat from performing those administrative duties. This decision occurred against a backdrop of long-standing political division, as Hamas had maintained de facto control of the Gaza Strip since 2007, while the PA governed the West Bank.23