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Biden administration rebukes Israel for repealing a settlement evacuation
WASHINGTON (JTA) — A law passed by Israel’s government yesterday has sparked a strong rebuke from the Biden administration, words of caution from some of Israel’s strongest supporters in the Senate — and damage control from Israeli Prime Minister Benjamin Netanyahu.
The new law repeals a portion of Israel’s 2005 disengagement, in which it withdrew settlers and troops from the entirety of the Gaza Strip and from four settlements in the northern West Bank. While much of Israel and the world focused on the evacuation from Gaza, opponents of the decision have committed themselves primarily to securing a return to the West Bank settlements. The vote on Tuesday allowed settlers to do just that — making it once again legal for Israelis to enter the sites where the West Bank settlements once stood.
That led to one of the Biden administration’s most lacerating criticisms of Israel’s new right-wing government. On Tuesday, State Department spokesman Vedant Patel said the law was “particularly provocative and counterproductive” and would not be “consistent” with Israel’s commitment to the United States.
“The U.S. strongly urges Israel to refrain from allowing the return of settlers to the area covered by the legislation, consistent with both former Prime Minister [Ariel] Sharon and the current Israeli government’s commitment to the United States,” Patel said.
In another sign of the Biden administration’s attitude toward the law, Israeli ambassador Michael Herzog was summoned to discuss it with the deputy secretary of state, Wendy Sherman — a rare move that indicates displeasure.
Netanyahu responded to that condemnation on Wednesday by asserting that the law was purely symbolic. The vote “brings to an end discriminatory and humiliating legislation that prevented Jews from living in areas of the northern West Bank,” a statement from Netanyahu’s office said, according to the Times of Israel. “However, the government has no intention of building new communities in these areas.”
The United States warning Israel that it is running the risk of its “commitment” to its closest ally is unusually strong language, and suggests that the Biden administration would see the rebuilding of the settlements as a major rift.
The drama follows a recent commitment by Israel to hold off on settlement expansion. Earlier this week, Israel and the Palestinian Authority agreed to cooperate on stemming a recent escalation of violence in the West Bank. As part of that agreement, Israel pledged to suspend settlement planning for six months. The summit where the agreement was reached was also attended by U.S., Jordanian and Egyptian officials.
The law allowing settlers to return to the area in the northern West Bank is one of a battery of far-reaching changes Netanyahu’s new government is hoping to push through. Most prominent among those plans is legislation to sap the courts of their independence, which has sparked massive, frequent protests in Israel’s streets and criticism from President Joe Biden and a range of other public figures.
Netanyahu is leading a coalition with far-right partners in senior roles, and his largest coalition partner, the Religious Zionist Party, strongly supports massive settlement expansion. On Tuesday, Orit Strock, a member of the party who serves as a minister in Netanyahu’s government, said she believes Israelis will one day resettle Gaza as well.
“How many years it will take, I don’t know,” she said in a television interview. “Very unfortunately, the return to the Gaza Strip will also involve many victims, just as leaving the Gaza Strip involved many victims. But there’s no doubt that at the end of the day, the Gaza Strip is part of the Land of Israel, and the day will come when we will return to it.”
Israeli-Palestinian relations — already tense since a sequence of Palestinian terrorist attacks over the past year and Israeli army raids on Palestinian population centers — have intensified since Netanyahu’s government was sworn in in December. This week’s summit was a bid to stem the violence ahead of a holiday season that includes the Muslim holy month of Ramadan, the Jewish holiday of Passover and the Christian holiday of Easter, when tensions in Israel and the West Bank have led to violence in previous years.
On Tuesday, some of Israel’s best friends among Democrats in Congress sent the Netanyahu government a message, urging it to abide by this week’s agreement with the Palestinian Authority.
“As we enter the holy month of Ramadan and prepare to celebrate both Passover and Easter, such de-escalation is crucial,” said the statement signed by Democrats on the Senate Foreign Relations Committee, among them Robert Menendez of New Jersey and Ben Cardin of Maryland, two of Israel’s fiercest Democratic defenders. “Israelis and Palestinians deserve to live with security and in safety, enjoying equal measures of freedom, prosperity, and dignity. We remain committed to supporting a negotiated two-state solution.”
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Federal Funding for Trump’s Ballroom in Jeopardy After Senate Ruling
Aerial view from the top of the Washington Monument shows construction crews as they continue site preparation for a planned White House ballroom in the area of the former East Wing in Washington, D.C., U.S., May 2, 2026. Photo: REUTERS/Ken Cedeno
A US Senate official on Saturday removed security funding that could be used for President Donald Trump’s planned White House ballroom from a massive spending package, Democratic lawmakers said, imperiling Republican efforts to devote taxpayer money to the contentious project.
The decision by the Senate’s parliamentarian, Elizabeth MacDonough, deals a blow to Trump and his administration, which has sought the money for security purposes related to the ballroom.
Trump has said the construction of the ballroom would be funded by $400 million in private donations. But Senate Republicans are seeking $1 billion in taxpayer funding to the Secret Service for security upgrades to the ballroom and other structures being built beneath it.
FRIVOLOUS DIVERSION OR NECESSARY MODERNIZATION?
Democrats have criticized the ballroom as an expensive and frivolous diversion by Trump at a time when Americans face rising costs such as higher fuel prices. Trump, a real estate developer-turned-politician, has written on social media that it will be “the finest Building of its kind anywhere in the World.”
MacDonough ruled that the security funding provision falls under chamber rules that require 60 votes to pass most legislation, according to the office of Senator Jeff Merkley, the top Democrat on the Senate Budget Committee.
Republicans hold a 53-47 majority in the Senate.
The parliamentarian interprets Senate rules, including whether legislative provisions are permitted. Republican senators still could revise the legislation to try to gain the parliamentarian’s approval.
Ryan Wrasse, spokesman for Senate Majority Leader John Thune, said in a social media post that Republicans would keep trying. “Redraft. Refine. Resubmit,” Wrasse wrote on X.
If Republicans do not succeed, they may be unable to include the ballroom-related funding in a $72 billion spending package they plan to bring to a vote on the Senate floor, with passage expected on a party-line vote with Democrats opposed. The bulk of the legislation is devoted to immigration enforcement.
Republicans have been invoking complex budget rules to try to secure passage without any Democratic support.
“While we expect Republicans to change this bill to appease Trump, Democrats are prepared to challenge any change to this bill,” Merkley said in a statement.
Democrats have opposed funding for Trump’s signature immigration crackdown absent reforms they have sought since federal immigration agents killed US citizens in separate incidents in Minnesota in January.
Republicans have said federal funding for ballroom security is needed to ensure presidential safety, citing an April incident in which an alleged gunman is accused of storming a black-tie media gala in Washington that Trump attended.
The administration has said the ballroom will modernize infrastructure, bolster security and ease strain on the White House, which often relies on temporary outdoor structures to host large events. Trump has said the ballroom will be completed around September 2028, near the end of his second term in office.
Democrats, hoping to win control of Congress in November’s midterm elections, are seizing on Republican support of the ballroom to portray Trump’s party as out of touch with the cost-of-living concerns of Americans at a time of rising energy costs driven by the Iran war he and Israel launched in February.
Trump last year ordered the demolition of the White House’s East Wing – constructed in 1902 during Theodore Roosevelt’s presidency and expanded four decades later during Franklin Roosevelt’s presidency – to make way for his ballroom.
The National Trust for Historic Preservation, a nonprofit organization, filed a lawsuit challenging the project, arguing that neither the president nor the National Park Service, which manages the White House grounds, possessed the authority to tear down the historic structure or erect a major new facility without explicit congressional approval.
A US appeals court in April allowed construction to continue after the judge handling the National Trust lawsuit issued an order halting the project.
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Bulgaria Wins Eurovision Song Contest, Israel Comes Second Again
Noam Bettan, representing Israel, performs “Michelle” during the Grand Final of the 2026 Eurovision Song Contest in Vienna, Austria, May 16, 2026. REUTERS/Lisa Leutner
Bulgaria won the Eurovision Song Contest for the first time on Saturday in a final overshadowed by five countries’ boycott over Gaza, claiming a dramatic victory despite another big public vote for Israel that again secured it second place.
The garish and usually good-natured competition involving pop acts from countries across Europe and beyond, now in its 70th year, was plunged into crisis by a dispute over Israel’s military offensive in Gaza, a response to the Hamas-led attack on October 7, 2023.
The public broadcasters of heavyweights Spain, the Netherlands and Ireland, as well as Iceland and Slovenia, chose not to take part in protest at Israel’s participation.
Israel has alleged a global smear campaign against it. Its performance at the final was not, however, marred by any obvious protests, unlike Tuesday’s semi-final.
“This is unbelievable. I don’t even know what’s going on right now,” Bulgaria’s entrant Dara told a press conference after winning with her thumping, crowd-pleasing dance track “Bangaranga” that avoided politics altogether.
The song touches on themes of empowerment and surrendering to the night. It also left many puzzled as to its meaning.
“Bangaranga is a feeling that everybody gets in themselves. It’s the moment that you choose to be in love and not fear,” Dara said when asked to explain the song in the “green room” where artists await the results.
“This is a special energy… Once you feel (at) one with nature and your universe, you feel the harmony that you can be whatever you want to be and that everything is possible,” she said.
BOOS WERE HEARD AT ISRAEL’S RESULT
Israel’s effort, trilingual love song “Michelle,” stirred less controversy than its entry last year, which was sung by a survivor of the October 7 attack.
Some booing from the audience was audible when Israel’s massive points haul from the public vote sent it surging up the table from eighth place, similarly to 2025, when it also finished second but much closer to the winner than this year.
Israeli public broadcaster KAN received a formal warning from organizers a week ago over videos posted online in which Bettan courted votes too aggressively, after a similar controversy involving Israel last year.
KAN said it plays by the rules and the videos were immediately taken down.
Finland’s entry, “Liekinheitin,” or Flamethrower, a love song in Finnish featuring violinist Linda Lampenius and pop singer Pete Parkkonen on a burning set, was the favorite this year, followed by Australia’s “Eclipse,” a celestially themed love ballad sung by national pop star Delta Goodrem.
In the end, Australia came fourth and Finland sixth.
ONLY MINOR PROTESTS IN VIENNA
The boycotts cut the number of contest entries to 35, the fewest since 2003, which will almost certainly have reduced the global television viewership of an event that last year was estimated at 166 million people, more than the Super Bowl’s 128 million.
The mood in the Austrian capital has been subdued, with protests over Israel’s participation drawing only small crowds. Police anticipated “blockades and disruption attempts” on Saturday that did not materialize.
There was a brief disruption during Tuesday’s semi-final, when one protester chanted “Stop, stop the genocide” and “Free, free Palestine” within range of a television microphone and was ejected along with three others for disrupting the show.
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Israel’s Economy Shrinks in First Quarter but Seen Rebounding After Iran War
People sit at an outdoor restaurant where Israeli flags are displayed, amid the ongoing conflict between Hamas and Israel, in Tel Aviv, Israel, July 12, 2024. REUTERS/Eloisa Lopez
Israel’s economy began 2026 with a slowdown, hit by war with Iran, but growth is expected to recover as long as the conflict does not reignite.
Gross domestic product contracted at an annualized rate of 3.3 percent in the first three months of 2026, the Central Bureau of Statistics said on Sunday, less severe than a 4 percent drop forecast in a Reuters poll of economists.
Israel’s economy grew 2.9 percent in 2025 and was expected to bounce back in 2026 to more than 5 percent growth after a ceasefire in October ended major fighting in the two-year Gaza war.
But growth took a hit after the US and Israel launched strikes against Iran on February 28, resulting in weeks of ballistic missile fire from Iran that closed schools and dampened business activity along with consumer spending.
“The Israeli economy began the year with strong momentum, with rapid growth in the first two months,” said Ofer Klein, head of economics and research at Harel Insurance and Finance.
“The lifting of most restrictions in April and the improvement in economic activity since then… indicate a relatively quick return to positive growth in the current quarter,” said Klein, who raised his growth estimate for this year to 3.5 percent from 3.2 percent.
The Bank of Israel sees 3.8 percent growth this year, down from a 5.2 percent estimate before the Iran war, depending on whether a ceasefire with Iran holds.
Jonathan Katz, chief economist at Leader Capital Markets, said he expected 4 percent growth.
“This is a modest GDP contraction compared to the second quarter of 2025 – the last Iran confrontation in June of 2025 – when GDP contracted by over 10 percent,” he said, adding that industrial exports bounced back in April.
The statistics bureau reported on Friday that the annual inflation rate held steady at 1.9 percent in April. Some economists believe interest rate reductions could resume as early as May 25, the Bank of Israel’s next rate decision meeting.
Israeli financial markets do not trade on Sunday. The shekel has appreciated 20 percent in the past year to 2.91 per dollar, a 33-year high. Tel Aviv share indices are close to all-time highs reached earlier in May.
In the first quarter, consumer spending fell 4.7 percent, exports declined 3.7 percent and government spending shed 4.8 percent. Investment in fixed assets rose 12.6 percent.
On a per capita basis, the economy shrank 4.5 percent in the quarter.