In spite of the Obama administration's criticism of this new building spree, the US Congress has just passed the largest foreign aid package to Israel in its history, some 2.7 billion dollars for the coming year. President Obama has not yet signed this into law but is likely to, I am afraid. It follows a ten year "letter of understanding" between the US and Israel signed by George Bush a few years back calling for continued US aid to Israel for at least ten years. AIPAC pushed that gem through because it was afraid no future president would be as big a doormat for Israel as Bush was. They were probably right.
from the article: U.S.: Israel plan to build in East Jerusalem harms peace process