US to cut indirect aid to Palestinians

The US will cancel or suspend more than $240m in projects aimed at assisting Palestinians out of concern that the money could go to help the new leadership of the militant Islamist movement Hamas, a senior State Department official said today.

At the same time, the US will redirect some of that money to humanitarian projects for the impoverished Palestinian people. Humanitarian assistance will rise by 57% to $287m over several years, the official said.