A prominent U.S. Jewish weekly has reported that the Bush administration is weighing a plan to declare an independent Palestinian state with temporary borders by the end of 2007, and has begun lobbying Congress to provide $100 million in aid to bolster Palestinian Authority Chairman Mahmoud Abbas.

The New York-based Forward newspaper said that the concept for a Palestinian state with provisional borders is based on the second phase of the stalled road map peace plan.

"A diplomatic source, briefed by administration officials on the idea of a state with provisional borders, said this week that the most significant advantage the plan has is that it would allow President Bush to achieve his goal of a two-state solution within a reasonable time frame," the Forward said in a story released at the weekend.

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"If implemented, such a plan also could help generate support for the United States among moderate Arab countries and possibly assist the American efforts to gain stability in Iraq."

Congressional sources told the Forward that the administration is asking lawmakers to give the green light to providing up to $100 million in aid previously appropriated for the PA but never delivered because of the Hamas victory in the January elections.

The proposal, which is said to be gaining support in Congress, earmarks the funds to Fatah-controlled Palestinian security forces, mainly to Abbas' presidential guard.

The money is to be used for paying salaries and for equipment, but it would not be used for the purchase of lethal weapons. "Weapons for the security forces are to be provided by Egypt and Saudi Arabia, according to sources familiar with the plan," the Forward said.