President George W. Bush said today the United States would provide $50 million in aid to the Palestinian Authority.
"To help ensure that the Gaza disengagement is a success, the United States will provide the Palestinian Authority $50 million to be used for new housing and infrastructure projects in the Gaza," Mr Bush said.
"These funds will be used to improve the quality of life of the Palestinians living in Gaza, where poverty and unemployment are very high," Mr Bush said at a White House Rose Garden appearance with Palestinian President Mahmoud Abbas.
The administration had faced opposition to providing direct assistance with no strings attached to the Palestinian Authority from Texas Republican Tom DeLay, the majority leader in the House of Representatives.
Mr Bush also said he was sending Secretary of State Condoleezza Rice to Jerusalem and Ramallah before the Israeli withdrawal from Gaza.