The bill passed at the Israeli parliament, which is "making it possible to bring some Palestinian neighborhoods behind the separation wall under a separate municipal entity under Israeli sovereignty is a step to undermine the foundations of the peace process and damage regional peace and stability", a statement released by the foreign ministry said.
Asked if any preliminary decision had been made, the official replied: "No".
In light of President Donald Trump's decision to recognize Jerusalem as Israel's capital, the Islamic State has declared war on the Palestinian terrorist group Hamas.
Haley was immediately backed up by President Trump, who tweeted, "We pay the Palestinians HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect". With trust in Washington restored, Benjamin Netanyahu's government would be more inclined going forward to make tough concessions that would ultimately be needed for a peace deal, the USA officials argued at the time, and Israeli officials quietly indicated that they could potentially do so. It is also the largest overall supplier of financial support for the Palestinians. Nothing changes with that. We're not giving the aid.
Since a December 21 United Nations vote condemning Trump's Jerusalem decision, US officials have been weighing various options for retaliating against the Palestinians for pushing the resolution, which passed by a 128-9 margin.
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The Palestinian Authority responded saying the United States should not blame Palestinians for "its own failures".
Days after President Donald Trump threatened to withhold future aid payments to Palestinians, Axios said the funding was frozen until the USA government finishes its review of aid to the Palestinian Authority.
According to Axios, Trump is considering cutting that portion of the funding altogether, and is weighing slashing as much as $180 million in USA funding to UNRWA. UNRWA now provides the Palestinians education, medical and dental care and social services such as food aid, vocational training, and some reconstruction work.
The fear of a humanitarian disaster is reportedly leading Israel's prime minister to privately ask the United States not to carry through on its threat.
Chris Gunness, a spokesperson for the U.N. Relief and Works Agency for Palestinian Refugees in the Near East, said it had not been informed of any changes to US funding at this time.
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