He said more than 20,000 homes need to be rebuilt and 100,000 people remain displaced with winter fast approaching.
Gaza this summer endured a 50-day war, the third between ruling Hamas and Israel since 2008. The Palestinians are seeking $4 billion in total aid.
Kerry said the U.S. money, which takes American aid to the Palestinians to more than $400 million this year, would go to security, economic development, food and medicine, shelter and water and sanitation projects.
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