This additional funding support people in Gaza, where hundreds of Palestinians have been direct victims of Israeli military aggression over the past month.
The humanitarian aid will protect "the most vulnerable Palestinians, provide life-saving assistance, and uphold human dignity," European officials said.
"Urgent humanitarian access is now vital to alleviate the suffering of the many innocent victims. Nothing can bring back the many civilian lives taken in this latest conflict and we are appalled by the deaths of so many children, including 11 children in Gaza who were benefiting from an EU-supported trauma care program," said Janez Lenarcic, the European Commissioner for Crisis Management.
The European Union is currently supporting the Palestinian population with social protection programs, medical care, education, access to clean water, and cash assistance.
"The EU insists on respect for international humanitarian law. It cannot accept that civilians are forcibly displaced or that their homes and schools are demolished," Lenarcic stressed.
Part of the 2021 additional funding will support the Palestinian Red Crescent Society in providing emergency medical services in the Gaza Strip, the West Bank, and East Jerusalem. European resources will also be used to support Palestinian refugees in Egypt.