We study the breaking of supersymmetry in models with anomalous U(1). These models are simple to construct and contain natural candidates for being the messengers of gauge-mediated supersymmetry breaking. When some of the ordinary matter fields transform under the anomalous U(1), we find a hybrid scenario in which the U(1) and the gauge interactions mediate the breaking of supersymmetry. This leads to a hierarchy of soft masses between the charged and neutral fields and provides a solution to the μ-problem. Among these models, we present a scenario in which the Higgs arises as a pseudo-Goldstone boson. This scenario naturally allows for values of the μ-term and the scalar soft masses larger than the weak scale. © 1998 Elsevier Science B.V.