The US says it is going to impose sanctions on the Palestinians' self-governance organisation as well as the body that represents it on the international stage.
The sanctions affect both the Palestinian Authority (PA) which was established by the Oslo peace accords, and the Palestine Liberation Organisation (PLO) which was recognised after the same process as the official representative of the Palestinian people in return for it recognising Israel and renouncing violence.
The State Department said it would deny visas to PLO members and PA officials.
The timing and language of the statement suggest it is the Trump administration's response to this week's French-Saudi led conference at the United Nations held to rally support for a future two state solution.
The meeting came as France, the UK and Canada committed to recognising an independent, demilitarised Palestinian state later this year, in some cases subject to certain conditions.
