ISRAEL, U.S. CUT OFF HAMAS' MONEY

Israel Halts Payments to Palestinians.

JERUSALEM - Israel branded the Palestinian government a “terrorist authority” Sunday and halted the transfer of hundreds of millions of dollars in tax money after Hamas took control of the Palestinian parliament. But the Israeli government held off on adopting even more drastic measures recommended by security officials, mindful of possible international reaction.

U.S. Freezes Assets of Group, Cites Hamas.

WASHINGTON - The Treasury Department on Sunday ordered U.S. banks to freeze the assets of an Ohio-based group the government claims funnels money to the militant organization Hamas. The organization, KindHearts of Toledo, Ohio, was connected with the Hamas-affiliated Holy Land Foundation and the al-Qaida-affiliated Global Relief Foundation, the Treasury Department said. The government took similar action against those groups in late 2001.  Under the government action, U.S. citizens are barred from doing business with KindHearts.