NEW YORK - The United States has withdrawn Fulbright scholarship grants to Palestinian students in Gaza because Israel won't let them leave to pursue their studies, The New York Times reported Friday. Students hoping to study advanced courses at U.S. colleges and universities this fall were advised of the decision by e-mail, the newspaper said. Responses ranged from shock to disappointment to anger, the report said. This could be interpreted as collective punishment, complained the chairman of the parliament's education committee. Some lawmakers faulted their government for failing to promote educational and civil development in a future Palestine. They cited hundreds of students offered grants by the United States and other Western governments. Israel has isolated the Gaza coastal strip, which is run by the Hamas. The U.S. consulate in occupied Jerusalem said that, given that policy, the grant money had been redirected to students elsewhere. The concern was that the funds would not be used for their intended purpose if the Palestinian students had to remain in Gaza, it said.