JERUSALEM (AP) – Israel said Sunday that it was releasing some $50 million in frozen tax funds to the government of moderate Palestinian Arab President Abbas in its first concrete move to bolster him in his battle with Hamas.

Israel and the international community have been trying to support Mr. Abbas since Hamas routed his Fatah movement and violently seized the Gaza Strip last month. The infighting has left the Palestinians with two rival governments – the isolated Islamic militant regime in Gaza and Abbas’ emergency Cabinet in the West Bank.

Israel has frozen roughly $600 million, mostly customs duties that it collects on behalf of the Palestinians, since Hamas won Palestinian elections in January 2006. Israel said Hamas, which is sworn to Israel’s destruction and has killed hundreds of Israelis in suicide bombings, could use the money to fund attacks.

After Mr. Abbas expelled Hamas from the Palestinian government last month, Israeli Prime Minister Olmert said the financial transfers would resume.

The tax funds account for roughly half of the Palestinian government’s operating budget. Without the money, the government has been unable to pay regular salaries to its 165,000 workers. Since the government is the largest employer in the Palestinian territories, the sanctions have crippled the Palestinian economy.

Mr. Olmert’s spokeswoman, Miri Eisin, said at least $50 million would be sent to Mr. Abbas’ government initially. Jacob Galanti, another official in Mr. Olmert’s office, said the transfers would begin Sunday. The remainder of the frozen funds are expected to turned over to Abbas over the next six months, officials said.

In the West Bank town of Ramallah, officials in the office of Mr. Abbas’ prime minister, Salam Fayyad, said they expected to receive the money by Monday. They said the money was essential because Fayyad, who also is the finance minister, has pledged to pay workers’ salaries this week.

Officials said Fayyad intends to pay government workers in Gaza as well, underlining Mr. Abbas’ claim to represent all Palestinians.

Mr. Olmert also has promised to free 250 Palestinian prisoners as a goodwill gesture to Mr. Abbas, though the move is on hold while security officials decide on the list, an Israeli official said on condition of anonymity because he was not authorized to talk to the media.

Speaking to his Cabinet, Mr. Olmert said warming ties with Fayyad create “paths for cooperation.” But at the same time, he said the Israeli army would push forward with its latest crackdown on Palestinian militants.

A series of Israeli airstrikes killed seven Palestinian militants in the Gaza Strip Saturday. Israel also has been targeting militants in the West Bank, including members of Abbas’ Fatah movement.

Mr. Abbas, a moderate who favors peace talks with Israel, has been trying to consolidate his control of the West Bank since losing control of Gaza. Mr. Abbas last week ordered all armed groups, including Fatah gunmen, to disarm as part of his efforts to restore law and order.

Mr. Olmert told his Cabinet on Sunday that the behavior of the new Palestinian government was encouraging.

“Some of the actions already taken by the Palestinian government … will help us to find, slowly and cautiously, paths of cooperation between us and them which without doubt will enable us to advance on the diplomatic track,” he said in a statement to reporters.

“At the same time, the war on terror continues and will not cease,” he said.

Also Sunday, Israeli Finance Minister Avraham Hirchson resigned as police investigate allegations of embezzlement at a workers’ union he headed in 2003. The resignation was a blow to Mr. Olmert, who considers Mr. Hirchson a key ally.