The U.S. State Department said it was convinced the fund helped China manage programs that involved forced abortions.
Secretary of State Colin Powell said the administration would continue to help women and children around the world through other programs.
The U.S. House Appropriations Committee, meanwhile, has blocked a proposal by a New York congresswoman, Nita Lowey, to spend $25 million for a U.N. family-planning program in Iraq, Afghanistan and four other countries.