Reporting from Jerusalem and Washington— A decision by the United Nations' cultural organization to admit Palestine as a member state set off a confrontation between the U.S. and the U.N., threatening to strip Washington of influence in several key international agencies while cutting off a major source of contributions to the world body.

The Obama administration said it would end funding for the United Nations Educational, Scientific and Cultural Organization hours after the group Monday voted 107 to 14 to accept the Palestinian Authority as a full member. The UNESCO action triggered U.S. laws from the early 1990s that bar Washington from giving money to any U.N. body that grants state status to the Palestinian territories.

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