A US Senate panel has cut $33 million in aid to Pakistan in response to the jailing of a Pakistani doctor who helped the CIA find Osama Bin Laden.
The Senate Appropriations Committee has said it will cut US aid by $1 million for each year of Shakil Afridi's sentence.
Secretary of State Hillary Clinton said his term was "unjust and unwarranted".
Dr Afridi was tried for treason under a tribal justice system for running a fake vaccination programme to gather information for US intelligence.
Bin Laden was killed by US forces in Abbottabad, Pakistan, in May 2011.
The move from the Senate panel follows earlier cuts to the White House's budget request for Pakistan.
The cuts would be part of a bill that would send $1 billion in aid to Pakistan in the next financial year.
Correspondents say the cuts reflect mounting frustration in Congress over Pakistan's role in fighting terrorism on its soil.