WASHINGTON—The State Department terminated its $230 million commitment to stabilization efforts in Syria, saying Friday it will instead rely on contributions from Saudi Arabia and other allies.

The department said it has secured approximately $300 million in contributions and pledges from allies since April. Consequently, Secretary of State Mike Pompeo has authorized the department to “redirect” the U.S. funding, following a monthslong review of the spending plans. The funds will be reallocated “to support other key foreign...