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PARIS (AP) — The United States announced Thursday it is pulling out of the U.N.’s educational, scientific and cultural agency because of what Washington sees as its anti-Israel bias and a need for “fundamental reform” in the agency.

Israeli Prime Minister Benjamin Netanyahu said Israel plans to follow suit.

While the Trump administration had been preparing for a likely withdrawal from UNESCO for months, the timing of the State Department’s statement Thursday was unexpected. The Paris-based agency is in the midst of a heated election to choose a new chief — with Qatar’s Hamad bin Abdulaziz al-Kawari in the lead as the Executive Board vote heads into a final ballot on Friday.

The outgoing UNESCO director-general, Irina Bokova, expressed her “profound regret” at the U.S. decision and tried to defend the reputation of the U.N. Educational, Scientific and Cultural Organization, best known for its World Heritage program to protect cultural sites and traditions.

She called the U.S. departure a loss for “the United Nations family” and for multilateralism, saying the U.S. and UNESCO matter to each other more than ever now to better fight “the rise of violent extremism and terrorism.”

The U.S. stopped funding UNESCO after it voted to include Palestine as a member state in 2011, but the State Department has maintained a UNESCO office and sought to weigh in on policy behind the scenes. The U.S. now owes about $550 million in back payments.

In a statement, the State Department said the decision will take effect Dec. 31, 2018, and that the U.S. will seek a “permanent observer” status instead. It cited U.S. belief in “the need for fundamental reform in the organization.”

Netanyahu said Thursday that Israel also plans to withdraw from the agency, saying it had become a “theater of the absurd because instead of preserving history, it distorts it.”

Israel has been irked by resolutions that diminish its historical connection to the Holy Land and have instead named ancient Jewish sites as Palestinian heritage sites.

Praising Trump’s decision as “brave and moral,” Netanyahu said he has ordered Israeli diplomats to prepare for Israel’s withdrawal from the organization in concert with the Americans.

Israel’s ambassador to the United Nations, Danny Danon, also praised Washington’s move as heralding “a new day at the U.N., where there is a price to pay for discrimination against Israel.”

“UNESCO has become a battlefield for Israel bashing and has disregarded its true role and purpose,” Danon said.