WASHINGTON, July 9: The United States will provide direct aid to the Palestinian Authority, rewarding Washington-backed political and security reforms with money for humanitarian projects, the White House said Wednesday.

“The funds will be used for humanitarian purposes, to alleviate suffering and to improve the Palestinian economy,” White House national security spokesman Michael Anton said, confirming media reports.

The initial outlay will run about 20 million dollars, said the spokesman, citing “considerable support in Congress” for the significant shift in US policy.

The United States to date has provided millions in aid — totalling some 200 million dollars this year — to the Palestinians through the UN or NGOs.

The move appeared designed to shore up support for Palestinian prime minister Mahmud Abbas and help him recast the Palestinian Authority. Bush mistrusts Palestinian Authority president Yasser Arafat and has shunned him.

“Obviously, none of this would have happened without significant reforms in the Palestinian Authority, especially in the finance ministry,” Anton told AFP. “We have confidence in Palestinian Finance Minister (Salam) Fayad, and we have confidence that he will use these funds in a transparent manner,” he added.

According to the Washington Post, the move represents a deepening commitment by the administration to the Middle East peace process launched by the president last month, as well as a major investment in Abbas.

Administration officials, who briefed congressional leaders about the decision, stressed the urgency of the action, saying they want to get the funds to the Palestinian Authority as quickly as possible to shore up Abbas as he tries to establish his credibility with the Palestinian people, the paper said.

The push for direct aid accelerated after a recent trip to the region by national security adviser Condoleezza Rice, during which Palestinian Finance Minister Salam Fayyad made an impassioned plea to Rice for direct assistance, The Post reported.—AFP