The US withdrew military assistance in Burma due to the government's and the military's violence against the Rohingya people.
The US is withdrawing military assistance units from Myanmar over the country's treatment of its Rohingya Muslim minority in Rakhine state.
The state department said it had also dropped travel waivers for Myanmar military officials, and was considering economic sanctions.
Almost a million Rohingya people have fled Myanmar for Bangladesh, says Bangladesh's envoy to the UN.
Myanmar's military says it is fighting militants and not targeting civilians.