The funding will also support emergency shelter assistance to displaced Gazans ahead of winter, the statement said.
Grants of NIS 7,180 per adult and 1,436 per child were recommended by the committee, for a total of over NIS 220 million.
The United Nations and aid groups have long complained of the dangers and obstacles to getting aid in and distributing it throughout Gaza, where the UN had warned a famine is looming.
Predicted famine in Gaza would likely be caused by hijacking of aid inside Gaza, and not lack of nutrition in Israeli aid, finds research.
The number of trucks going on and off the pier does not equate to the number of trucks transporting aid to the distribution warehouse.
Franklin Graham encouraged Christians to "pray for Prime Minister Netanyahu and all of Israel’s leadership as they go through these very dark days."
The UN World Food Programme will have a handful of staff stationed near the pier to coordinate distribution of the aid - using contractors - throughout Gaza, said a UN official said.
The institute said it pays a supplement to survivors’ pensions and those who have no pensions due to their low-income threshold and to ensure at least a minimum income for subsistence.
On Friday, United Nations experts demanded the safe passage of the flotilla and called on Israel to adhere to international law and orders of the ICJ to allow unimpeded access for humanitarian aid.
Now that Gaza is bringing in over 500 trucks of aid per day from around four land crossings, according to Israeli officials, the island will not replace but complement the land aid efforts.