Rice to Pledge Over $550 Million in Palestinian Aid

ABC News’ Kirit Radia Reports: Secretary of State Condoleezza Rice will pledge over $550 million in aid Monday to reform the fledgling Palestinian institutions and economy, ABC News has learned.

Rice is expected to make the announcement at a donor’s conference in Paris where former British Prime Minister Tony Blair, who now leads the effort to bolster Palestinian institutions, hopes to raise $5.6 billion for the cause.

According to State Department officials the over $550 million will include $150 million in "budget support." Much of this money, around $410 million, has already been requested in the administration’s various budget requests, though they are still pending Congressional approval.

The Paris donor’s conference follows last month’s peace conference in Annapolis, MD during which the Israelis and Palestinians committed to a year of intense peace negotiations, the first such talks in seven year. The two parties set a goal of establishing a Palestinian state by the end of 2008.

According to State Department figures, the United States has been the largest single donor to the Palestinians since 2002, having provided over $1.8 billion to the Palestinian people during that time.