Rice told reporters in New York Tuesday that the United States is concerned about the humanitarian needs of the Palestinian people. She said, however, the Hamas-led Palestinian government must renounce violence before it can be a partner in the peace process.
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Rice spoke as the so-called Mideast Quartet of peace-makers - the United States, Russia, European Union, and United Nations - met in New York to discuss ways to revive the peace process.
U.S. officials say the medical aid will be provided through the United Nations Children's Fund and approved non-governmental organizations.
The United States and other Western nations have frozen aid to the Hamas-led Palestinian government because of the group's refusal to renounce violence and recognize Israel.