Move by congress in response to bid for full UN membership called “counterproductive to peace efforts”.
The administration of US President Barack Obama is concerned that politicians may freeze about $140m in funding for the Palestinian Authority’s security services.
The US congress has already blocked $200m in development aid, following the Palestinian campaign for UN recognition.
Co-operation between the Palestinian Authority security forces and the Israeli military is at an all-time high, and a funding freeze could affect security in both Israel and the Palestinian territories, analysts say.
Al Jazeera’s Charles Stratford reports from the occupied West Bank.