The money had been frozen by Congress for months, but potential economic collapse has gotten the State Department to move.
The Palestinian Authority is facing its worst economic crisis in years, in part because of a failure by donors to deliver pledged funds. But its finances were plunged further into chaos after president Mahmud Abbas won upgraded UN observer status at the UN General Assembly in late November.
Congress froze the US administration’s requests for funds.
Obama met [President Mahmud] Abbas in Ramallah in the West Bank on Thursday as part of his visit to Israel and the Palestinian territories, accompanied by US Secretary of State John Kerry.
Kerry has pushed for the funds to be released since taking up his post on February 1.