The State Department will use funds from the Emergency Refugee and Migration Assistance Fund to give aid through the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

UNRWA chief Peter Hansen had warned last month that agencies would have to slash aid programmes unless more funds could be found.

UNRWA launched an appeal for $102 million dollars to continue operations until the end of the year.

The UN group operates in Lebanon, Syria, Jordan, the occupied West Bank and Gaza Strip.

The European Union, the biggest aid donor to Palestinians, has allocated € 237 million ($269 million) to UNRWA for the years 2002 until 2005.