U.S. President Barack Obama has handed over a 400 million dollar humanitarian aid package for the West Bank and the Gaza Strip. The announcement, was made at the White House during a visit to Washington by Palestinian President Mahmoud Abbas.

The 400 million US dollar package won't just help West Bank and Gaza Strip residents lead a better life, it will also help strengthen the leadership of the Palestinian National Authority and its hold on the region.

The White House says the aid package will help "increase access to clean drinking water, create jobs, build schools, expand the availability of affordable housing, and address critical health and infrastructure needs."

In the meeting, the two leaders reviewed the progress in Israeli-Palestinian proximity talks and how the United States can work with the parties to transition to direct talks in order to reach a permanent agreement that leads to the establishment of an independent Palestinian state.

Barack Obama, U.S. President, said, "I did share with President Abbas in order for us to be successful in these next several months that both sides have to create an environment, a climate, that is going to be conducive to an actual breakthrough."

The visit by the Palestinian President comes amid an international backlash against close U.S. ally Israel after its forces boarded a Turkish aid ship bound for the Hamas-controlled Gaza Strip on May 31. It's where nine pro-Palestinian activists were killed. Abbas has urged that the "Israeli siege of the Palestinian people" be lifted.

Mahmoud Abbas, Palestinian President, said, "We also see the need to lift the Israeli siege of the Palestinian people, the need to open all the crossings and the need to let building material and humanitarian material and all the necessities go to the Palestinian people."

Abbas insists talks with Israel shouldn't resume until its government stops all Jewish settlement construction in the West Bank. Israel blames Abbas of setting the conditions for resuming the talks and vows to ensure the "natural growth" of the Jewish settlements.