Rather than threaten Abbas with cutting off funds and dire diplomatic consequences, there is a simple solution. Obama (as all previous US Presidents) has confirmed the illegality of settlements and the legitimacy of the 1967 borders two of the major hurdles for negotiating. So, tell Israel either it agrees to those points and begins negotiations immediately or 1.) US will vote in favor of Pal statehood and 2) cut off all funds and 3) impose dire diplomatic consequences. Then, everyone can step back to avoid the rush to the negotiating table.
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Gaza education ministry shuts 2 Shejaiyeh schools citing fear of Israeli artillery fire (Haaretz)