Secretary of State Hillary Clinton said Israel’s decision to build 3,000 more housing units in Jerusalem and the West Bank “sets back the cause of a negotiated peace.” The White House earlier described the plan as "counter-productive."

Addressing the Saban Forum in Washington, Clinton rejected Foreign Minister Avigdor Lieberman’s pessimism about the Palestinian Authority’s ability to govern and bring about a lasting peace. "Some Israelis claim [Palestinian President Mahmoud] Abbas is not a partner for peace," Clinton continued, "Well, I think that should be tested."