Why did the Palestinian Authority reduce funding for the Gaza Strip in 2018?

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Oslo Accords: Declaration of Principles on Palestinian Self-Rule — Palestinian Authority U.S. Pres. Bill Clinton (center) looking on as Israeli Prime Minister Yitzhak Rabin (left) shakes hands with Palestinian leader Yasser Arafat after the signing of the Declaration of Principles on Palestinian Self-Rule, September 1993.

The Palestinian Authority (PA) reduced funding for the Gaza Strip in 2018 primarily due to the failure of reconciliation efforts with Hamas.12

Following a 2017 agreement, the PA had begun to assume certain government functions in the Gaza Strip. However, the PA was unable to achieve full governance or control over public institutions in the territory. As the reconciliation process faltered and disagreements between the two factions escalated, the PA decided to cut back on funding for the Gaza Strip and retreat from performing its government functions there. This decision occurred against a backdrop of broader financial hardship for the PA, which was facing reduced support from international donors and United States aid cuts during that period.1324