Hypocritical? That assumes we have some duty to give the Palestinians money.
Well the West of course can renege on its commitments to fund the authority that it was undertaking to aid the peace process , it has no obligations whatsoever .Though the blocking of other countries funding for the PA is hypocritical .
And the matter of Israel stopping the money is another kettle of fish entirely , since that is Palestinian money which is a product of the palestinian people and they do have a duty to hand it over regardless of if they like the government or not . Taking something that isn't yours and not returning it to its rightful owner is theft .