BASTROP, Texas (AP) – A wildfire fueled by grass, brush and trees has destroyed at least 25 homes and three businesses in central Texas.

Officials say two National Guard helicopters joined other aircraft Sunday in dropping water on the blaze near Bastrop and Smithville.

Gov. Rick Perry has activated state resources, including four Blackhawk helicopters equipped to drop water and fire retardant, firefighters and equipment.

The wildfire has charred just over a square mile since it was started Saturday by a fallen power line.

Texas Forest Service spokesman Lewis Kearney says the fire is about 70 percent contained and that no additional structures are threatened.

Residents who were evacuated during the night were being escorted back into the area Sunday to identify their property. Bastrop is about 30 miles southeast of Austin.

Mullen: Iran has material for nukes

WASHINGTON (AP) – The top U.S. military official said Sunday that Iran has sufficient fissile material for a nuclear weapon, declaring it would be a “very, very bad outcome” should Tehran move forward with a bomb.

Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, offered the assessment when questioned in a broadcast interview about a recent report by the U.N. nuclear watchdog on the state of Iran’s uranium enrichment program, which can create nuclear fuel and may be sufficiently advanced to produce the core of warheads.

Mullen was asked if Iran now had enough fissile material to make a bomb. He responded, “We think they do, quite frankly. And Iran having a nuclear weapon I’ve believed for a long time is a very, very bad outcome for the region and for the world.”

State Department spokesman Robert A. Wood said Sunday that it was not possible say how much fissile material Iran has accumulated.

“There are differing view not only outside government but also inside the government” on how far Iran has gone, Wood said. He added that while he was not suggesting Mullen was incorrect, “We just don’t know” exactly how much fissile material Iran now holds. “We are concerned they are getting close” to having enough to build a nuclear weapon, he added. Wood spoke to reporters traveling with Secretary of State Hillary Rodham Clinton in Egypt.

U.S. to free up aid for war-torn Gaza

SHARM EL-SHEIK, Egypt (AP) – U.S. Secretary of State Hillary Rodham Clinton on Monday will pledge about $300 million in U.S. humanitarian aid for the war-torn Gaza Strip, plus about $600 million in assistance to the Palestinian Authority, a U.S. official said Sunday.

State Department spokesman Robert A. Wood told reporters traveling with Clinton Sunday that she would announce the donations at an international pledging conference at this Red Sea resort. The conference is seeking money for Gaza and the Palestinian economy.

Obama administration officials had indicated last week that the U.S. was preparing to pledge $900 million in assistance for Gaza, but Wood’s description of the plan Sunday indicated that the only portion going directly to rebuilding Gaza was $300 million.

Israeli leader faces indictment

JERUSALEM (AP) – Israel’s attorney general notified Prime Minister Ehud Olmert on Sunday that he plans to indict him on suspicion of illicitly taking cash-stuffed envelopes from a Jewish-American businessman – a sensational case that turned public opinion so sharply against the Israeli leader that he was forced to resign.

Olmert would become the first Israeli prime minister ever indicted.

Before a decision on an indictment is made, Olmert will have one last chance to try to persuade Attorney General Meni Mazuz not to charge him, Mazuz said in a news release. The attorney general is already considering bringing Olmert to trial in a second corruption investigation.

Five corruption investigations are pending against Olmert in all, and he has denied wrongdoing in each one. His spokesman Amir Dan predicted Sunday that the charges would “disappear in the end.”

The sight of police cars arriving at Olmert’s official residence has become routine, with police questioning him 16 times in recent months in connection with various investigations.

All the investigations predate his becoming prime minister in January 2006, when he was mayor of Jerusalem and minister of industry and trade.

The most stunning of the allegations came from Morris Talansky, a 76-year-old New York businessman who testified in an Israeli court last year that he handed envelopes stuffed with tens of thousands of dollars to Olmert, in part to help finance a luxurious lifestyle of expensive hotels and fat cigars.