"Foreign aid from European taxpayers perpetuates the regime’s ability to neglect the needs of its people and stifles meaningful policy changes," Brian Hook, the U.S. special representative for Iran, said in a statement.
"The Iranian people face very real economic pressures caused by their government’s corruption, mismanagement, and deep investment in terrorism and foreign conflicts," he added. "The United States and the European Union should be working together instead to find lasting solutions that truly support Iran’s people and end the regime’s threats to regional and global stability."
The EU decision on Thursday to provide 18 million euros ($20.7 million) in aid to Iran was aimed at offsetting the impact of U.S. sanctions as European countries try to salvage the 2015 agreement that saw Tehran limit its nuclear ambitions.
President Donald Trump pulled the United States out of the nuclear deal in May and is reimposing sanctions on Tehran, even as other parties to the accord are trying to find ways to save the agreement.