The US military says it is cancelling $ 300mn in aid to Pakistan over what it calls Islamabad's failure to take action against militant groups.
President Donald Trump has previously accused Pakistan of deceiving the US while receiving billions of dollars.
Pentagon spokesman Lt. Col. Koné Faulkner said the US military would aim to spend the money on other "urgent priorities".
The move, which needs to be approved by US Congress, is part of a broader suspension announced in January.
The US state department has criticized Pakistan, a key ally, for failing to deal with terrorist networks operating on its soil, including the Haqqani network and the Afghan Taliban.
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