The US Department of Transportation (DoT) in September sent a letter to the airline warning it to end what it said amounted to discrimination.
The DoT confirmed to AFP on Wednesday that state-owned Kuwait Airways had a day earlier informed authorities that it would eliminate the route.
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Efforts to book a flight with the airline for later this month between the cities produced only an "Error Message."
It comes after Kuwait Airways' booking system would not sell a ticket to Israeli citizen Eldad Gatt in 2013.
In response to US authorities, the airline said it was merely obeying Kuwaiti law prohibiting all commercial relations with Israeli entities, residents or nationals.