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The US officials stand ready to work with Pakistan for a resolution, Manning said.
"Our expectations are straightforward: Taliban and Haqqani leadership and attack planners should no longer be able to find safe haven or conduct operations from Pakistani soil," he said.
"That amount has been suspended, not cancelled or reprogrammed, as we continue to hope that Pakistan will take decisive action against the terrorist and militant groups that we seek," he said.
Manning said to date none of that FY17 funding has been distributed to Pakistan. The last disbursement, of $550 million in FY16 CSF, was in early 2017, he said.
"This suspension is not a permanent cut off at this time," he said, adding: "Security funding and pending deliveries will be frozen, but not cancelled or reprogrammed at this time."
The US will, however, continue holding conversations in private with the Pakistani government, Manning said.
He added, "We stand ready to work together with Pakistan to combat terrorist groups without distinction."
Last week, President Donald Trump froze payments from the "coalition support fund" for Pakistan, worth $900 million, saying Pakistan is not doing enough to target Afghan Taliban and Haqqani group bases.
The coalition funding is set aside to refund Pakistani spending on counter-terrorist operations.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)