If Israel says No ..... USA should obey.
We Americans became the obedient slaves of Israel, spicily in president Bush era.

It didn't start with Bush, either of them. I agree its a stupid decision on our part why did We grant them in the first place if we weren't going to let them be used?

why did We grant them in the first place if we weren't going to let them be used?

My guess would be to reap the political mileage of giving scholarships to Palestinians, since American Academia traditionally leans left and would approve of such a gesture. Then wait for the inevitable ruling from the occupation authority and hope nobody notices when you don't really give them the money.