Washington cut off funding under the Obama Administration in 2011 because UNESCO admitted the Palestinians as full members, and the UN body retaliated by taking away the US vote in UNESCO decisions.

In May of this year, UNESCO voted on Israel's Independence Day to approve a resolution rejecting any legal or historical claims by Israel to the city of Jerusalem, a move strongly condemned by the Israeli government.

Then in July, UNESCO declared the city of Hebron in Biblical Judea, the final resting place of the Jewish patriarchs Abraham, Isaac and Jacob, to be a Palestinian World Heritage site.

State Department Spokesperson Heather Nauert released a statement Thursday which said that the U.S. had "notified UNESCO Director-General Irina Bokova of the U.S. decision to withdraw from the organization and to seek to establish a permanent observer mission to UNESCO."

"This decision was not taken lightly, and reflects U.S. concerns with mounting arrears at UNESCO, the need for fundamental reform of the organization, and continuing anti-Israel bias at UNESCO," the statement said.

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