Diaspora Affairs Minister Naftali Bennett says in a statement that the funds will be earmarked to help the 60,000 -strong community repair and rebuild schools, synagogues and a community center damaged in the storm and floods.
Bennett says that "for years the Jewish communities stood by Israel when it needed their help; now it is our turn to stand by Houston's Jewish community."
The aid money will be submitted for government approval at an upcoming Cabinet meeting.
Harvey struck on August 25 and pounded the city with five consecutive days of heavy rains, causing an estimated tens of billions of dollars in damage.
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